KEY POINTS
- Bukele said he would be happy to share and discuss El Salvador's Bitcoin-backed volcano bond project with Argentina
- The volcano bond project was initially expected to launch earlier this year but appears to have been stalled
- Argentina's Javier Milei has said Bitcoin will return financial power to the private sector, its 'original creator'
El Salvador's President Nayib Bukele is a proud Bitcoin advocate, and now it appears he has inspired other countries to explore the digital currency's potential for their economic strategies.
During his visit to Argentina's Senate on Tuesday, Bukele spoke with Argentine Vice President Victoria Villaruel. It turns out Villaruel is interested in El Salvador's Bitcoin strategy, specifically mentioning the Central American nation's volcano bond project.
Villaruel's Interest in Bitcoin
In a short video (with English subtitles) posted by El Salvador's ambassador to the United States, Milena Mayorga, that showed introductory discussions by Bukele and Villaruel, the Argentine leader expressed huge interest in the world's largest cryptocurrency by market value.
"I wanted to take advantage of these short minutes to talk to you about Bitcoin. It's something that interests me a lot," she told Bukele, who immediately lit up with a smile once the digital asset was mentioned.
Nuestra agenda de #LibertadEconómica, #Bitcoin y Bonos Volcán, son parte de la conversación sostenida por el Presidente @nayibbukele en el Senado de Argentina.
— Milena Mayorga (@MilenaMayorga) October 2, 2024
🔥🚀 pic.twitter.com/iQEFmz9SPy
Bukele Indicates He Will Share Bitcoin Strategy with Argentina
Villaruel went on to reveal that she was also interested in El Salvador's volcano bond project. She asked if Bukele would be gracious enough to talk about the said project, to which the Salvadoran leader said, "Of course, yes."
Bukele said he was honored to be at the Argentine Senate and said it would be his pleasure to talk about BTC and everything related to the digital currency.
What is El Salvador's Volcano Bond?
The country's volcano bonds, also called "Bitcoin bonds," are designed to pay down sovereign debt and also produce funding for Bukele's "Bitcoin City" project. Bukele first announced the bonds in 2021.
The bonds are backed by Bitcoin mined from the local Salvadoran BTC mining industry. However, the Bitcoin miners are expected to only make use of renewable energy in their operations, such as the energy from El Salvador's active volcanoes.
Bukele's Bitcoin Office confirmed in mid-December 2023 that the country's Digital Assets Commission (CNAD) provided regulatory approval for the volcano bonds.
🚨BREAKING NEWS🚨
— The Bitcoin Office (@bitcoinofficesv) December 12, 2023
The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD).
We anticipate the bond will be issued during the first quarter of 2024.
This is just the beginning for new capital markets on #Bitcoin in El Salvador.
🇸🇻🌋🚀
At the time, the office said it expects the bonds to be issued in the first quarter of 2024. It is unclear whether the bonds will still make it to the market this year.
Argentine Leadership's $BTC Stance
Even before Villaruel expressed interest in El Salvador's Bitcoin strategy, Argentine President Javier Milei already had positive words to say about the world's first decentralized digital currency.
He referred to Bitcoin as a revolution that will return money "to its original creator, the private sector." He is also recognized in the crypto community as Bitcoin-friendly.
When he won the presidency last year, BTC prices spiked by nearly 3%. While Milei has yet to make public comments regarding El Salvador's move to become the first country to recognize BTC as legal tender, he has called for the shutdown of the Argentine central bank.
