El Salvador has postponed the issuance of bitcoin bonds until September, according to a report

According to sources, El Salvador's government had to delay the issuing of a Bitcoin (BTC)-backed bond due to adverse food market conditions caused by the geopolitical situation.

El Salvador has postponed the issuance of bitcoin bonds until September, according to a report

El Salvador's "Bono Volcán" will not be operational in March, as the Salvadoran government had hoped, according to Finance Minister Alejandro Zelaya in an interview with a local television station.


The delay, according to Zelaya, is due to unpredictable Bitcoin prices exacerbated by the Russian-Ukraine issue. He went on to say that the government of El Salvador was waiting for favorable financial market circumstances, which he expected to arrive no later than September, and that:


"It's not the right time to issue the bond [...]" The market variations in May and June are a little different. Later this month, in September. If you go out on the foreign market after September, it's tough to raise finance."


According to CoinGecko data, Bitcoin is currently trading at $42,236, up roughly 10% in the last 30 days. Since the Salvadoran government revealed plans for Bitcoin bonds in November, the cryptocurrency has lost over half of its value.


Last week, Zelaya hinted at a possible delay of El Salvador's Bitcoin bond, citing the world's fragile political climate as one of the major reasons for the delay.


The $1 million Bitcoin bonus was supposed to go live in mid-March, as previously reported. Congressman William Soriano of El Salvador stated on Twitter in early February that the Bitcoin bond would be live in the second or third week of March.


President Nayib Bukele of El Salvador first announced plans for the bond in November 2021. According to reports, the bond included a 6.5 percent coupon and a 50 percent Bitcoin dividend of the price gain after five years. Half of the anticipated $1 billion in revenues from the offering will be used to establish "Bitcoin City," a community dedicated to geothermal-powered Bitcoin mining using neighboring volcanoes. The remaining $500 million will be put into Bitcoin directly.


El Salvador's decision to delay the debut of Bitcoin bonds coincides with the government's apparent slowdown in purchasing fresh Bitcoin. The Salvadoran government, which has previously reported back-to-back Bitcoin purchases at least once a month, has not revealed a new purchase since January 2022. 

Post a Comment

0 Comments