Bitfinex On Track to List El Salvador’s Bitcoin-backed Volcano Token

Cryptocurrency exchange, Bitfinex has confirmed it is on track to list the Volcano token when El Salvador launches it later this year. 

Bitfinex Chief Technology Officer Paolo Ardoino disclosed that the exchange sees sufficient demand for El Salvador’s proposed $1 billion bitcoin bond. He also confirmed that the digital asset trading platform is trying to “make things happen in a more timely fashion.”

El Salvador last month passed legislation to create her most desired Bitcoin City through its bitcoin-backed Volcano Bond. The Volcano token will be a bitcoin-backed digital asset denominated in dollars.

The Volcano token aims to raise capital to pay down sovereign debt, fund Bitcoin city building, and create a bitcoin mining infrastructure in the country. More precisely, El Salvador hopes to use half of the funds to build its proposed Bitcoin City and the remaining $500 million to buy BTC. According to the proposal, proceeds from the bitcoin investment will go to bond investors.

Bitfinex Awaits El Salvador’s Local Regulators

The digital securities law passed by the country entailed the formation of a local regulatory body. It would also create a prospectus for intending investors according to the law. 

Ardoino confirmed that Bitfinex would apply for a license to trade Volcano token securities once El Salvador’s local regulatory office is up and running. The exchange will list the long-awaited bitcoin-backed digital asset when it receives a license.

Bitfinex has always shown its support for El Salvador’s Bitcoin City since its inception. The exchange confirmed in 2021 that it would launch a securities platform for the proposed Bitcoin bonds. Bitfinex also recently donated $1.3 million worth of BTC to the bitcoin-friendly nation.

Bitcoin City Keeps Gaining Momentum

Once a point of criticism for El Salvador and her bitcoin-loving president, the Volcano token is set to go live soon. President Nayib Bukele passed the bill to lawmakers last year, and the project has not slowed down since then.

The Bitcoin City, which the country intends to build with the proceeds from selling its Bitcoin bonds, has already received international recognition. The city’s design, created by Mexican Fernando Romero, has already won the prestigious LOOP Designs Award in the Landscape and Urban Design category.

The Bitcoin City will be a tax-free coastal town using geothermal energy from a nearby volcano for mining bitcoins.