(Bloomberg) — Cryptocurrency exchange Bitfinex expects El Salvador to issue its long-awaited “volcano” token this year after the nation’s congress approved a law in December to enable the world’s first sovereign blockchain bond.
The volcano token will be a bond that will be issued using blockchain technology, and which will trade on Bitfinex’s exchange.
Read more: El Salvador’s New Digital Securities Law
Bitfinex Chief Technology Officer Paolo Ardoino said in an interview he sees enough demand for El Salvador to issue the full $1 billion it is seeking.
Under the new law, El Salvador now needs to create a digital securities regulator, and draft a prospectus for potential investors, Ardoino said. Bitfinex will apply to the regulator for a license to trade securities once its local office is up and running, he added.
“We are on the right track now in order to make things happen in a more timely fashion,” Ardoino said.
The government of President Nayib Bukele wants to use $500 million of the money raised to help build a tax-free coastal town known as Bitcoin City that would use geothermal energy from a nearby volcano for mining digital coins. Another $500 million would be used to buy Bitcoin, with any appreciation in the digital currency ultimately shared with investors, according to Bukele’s plan.
The nation’s use of Bitcoin alongside the dollar has been criticized by the International Monetary Fund, ratings agencies and others.