The tokenised bonds are planned to be denominated in US dollars, have a maturity of 10 years, and carry an annual interest rate of 6.5 percent
El Salvador has recently passed a law that establishes a legal framework for the creation of a Bitcoin-backed bond, called the "Volcano Bond", which will be used to pay off government debt and finance the construction of a planned city called "Bitcoin City".
The name "Volcano" for the bonds comes from the fact that the proposed location of "Bitcoin City" is near the Conchagua volcano and will be powered by its hydrothermal energy.