What are the volcano bonds?

The Volcano Bonds are a $1 billion bond, denominated in U.S. dollars, with a 10-year maturity in, apparently, January 2032. They pay 6.5% annual interest. El Salvador will invest half of the proceeds in “infrastructure build,” and put the rest into Bitcoin.

How to buy El Salvador volcano bonds?

Investors can fund their bond purchases with Bitcoin, US dollars, or Tether (USDT)—a US dollar stablecoin. Those who invest at least $100,000 can qualify for permanent residency in El Salvador and citizenship after five years. Since El Salvador is issuing the Volcano Bonds on the Liquid Network, the bonds will trade 24/7/365 and clear immediately.

Could volcano bonds be a catalyst for bitcoin adoption?

Bitcoin City will have residential and commercial areas, services, entertainment, restaurants, and a new international airport. Bukele plans to finance the construction of Bitcoin City with further Volcano Bond issues, presuming the initial one is successful. Here’s the bottom line. Volcano Bonds could be an enormous catalyst for Bitcoin adoption.

What is the difference between volcano and non-volcano?

In general, if Bitcoin goes up, Non-Volcano has an advantage of $25,000. If Bitcoin goes down, Volcano returns $0 on the Bitcoin portion, while Non-Volcano returns something unless Bitcoin goes to zero.