Sep 2, 2022 12:07 UTC
Sep 2, 2022 at 12:07 UTC
The launch of El Salvador’s bitcoin bonds, issued to finance a part of the development of the Bitcoin town within the country, are going to be delayed once more. During a recent interview Paolo Ardoino, CTO at Bitfinex, the exchange within which these bonds are going to be offered, expressed that the law framework required for the supply of those digital securities remains not prepared.
El Salvador to Delay Bitcoin Bonds Launch
The launch of the long-lasting bitcoin bonds of EI Salvador, which can serve to fund the development of the Bitcoin town declared last year, are going to be delayed, consistent with reports coming back from Paolo Ardoino, CTO at Bitfinex. During a recent interview offered to Fortune, Ardoino expressed that the law framework that might support this supply was still not prepared.
However, Ardoino made a prediction on the launch date of the bonds. He declared:
“If the law passes by September month, I would expect it to moderately take 2 to 3 months to own everything else rolled out.”
The bond token was to be issued initially within the Bitfinex exchange, using the Liquid network, managed by Blockstream, because of the platform for its distribution.
Volcano Bonds’ Background
The bitcoin bonds, dubbed volcano bonds because of the heat which will be wont to power mining operations within the Bitcoin town, were initially declared in November 2021. President Nayib Bukele aimed to raise $1 billion with this instrument. The launch of the bonds was foreseen to happen after 60 days after this announcement.
However, the bond launch was delayed. The Salvadoran Congress wrote twenty bills so as to support the launch of those digital securities in Jan. Later, in May, treasury minister Alejandro Zelaya said the launch of the bonds was on hold because of the market conditions and therefore the state of affairs of the war in Europe, hinting at a doable launch in May Or June month.
In an interview in June month, Zelaya explained that it had been not possible to launch the bonds then because of many factors, together with the Russian-Ukrainian conflict. At the time, he explained that several investors curious about cryptocurrency instruments pivoted to investments associated with the munitions industry.
The government of the EI Salvador has been heavily criticized for the losses caused by the investments President Nayib Bukele has made, shopping for the bitcoin “dip” many times.