Bitcoin bonds from El Salvador still on the market this year?

Last Updated: 31 August 2022

The issuance of bitcoin bonds in El Salvador has been delayed again, a logical consequence of the current bear market. According to an interview that the business magazine, Fortune, conducted with Paulo Ardoino, the chief technology officer at Bitfinex and Tether.

Bitcoin Bonds

With the bond round, the Latin American country aims to raise $1 billion from the market, an ambitious plan announced by President Nayib Bukele in November 2021 when the price was still above $60,000. This round was originally due to start in March 2022 but has been postponed again. The bonds would be backed by bitcoin from the state treasury, and bitcoin is yet to be mined from volcanic energy, hence the title ‘Volcano bonds.’

Ardoino now says he believes this financial product will see the light of day this year. The delay is due to the current negative sentiment in the market. Also, the framework of rules in El Salvador is not yet ready, as the country’s congress has yet to approve the issue. To Bukele’s advantage, his political party has the majority in the country.

Bitfinex is helping to market the bonds by opening up its trading platform. People like Max Keiser and Samson Mow also helped design the product. According to Ardoino, the government will give its green light before September this year.

Then it will take another two to three months before it is technically ready for the market. That would mean we would see the launch before the end of 2022, more than a year after the announcement.

In February, El Salvador’s Finance Minister Alejandro Zelaya blamed the war between Ukraine and Russia for the delay.

Bitcoin cash

The country of El Salvador has acquired some 2,301 bitcoins since September for about $103.9 million, while their value has since dropped to $45 million. The last purchase was 80 bitcoin at an average price of $19,000.

Author

  • Ivan came across the topic of cryptocurrencies in early 2016 and, as an author and enthusiast, has been intensively involved with the topics of cryptocurrencies, blockchain and STOs ever since.

error: Alert: Content is protected !!