The launch of El Salvador’s bitcoin bonds, issued to finance part of the construction of the Bitcoin City in the country, will be delayed again. Paolo Ardoino (CTO of Bitfinex), the platform in which the bonds will be issued, said that it is not yet possible to create the legal framework for digital securities.
El Salvador to Delay Bitcoin Bonds Launch
According to Bitfinex’s CTO Paolo Ardoino reports that the launch of El Salvador’s iconic Bitcoin bonds, which will help to finance the construction of Bitcoin City, has been further delayed. Fortune was able to interview Ardoino, who stated in an interview that the legal framework for this issue is still being developed.
Ardoino however made an prediction about the bond’s launch date. He declared:
If it passes in September, then I expect that everything will be done within two-three months.
According to reports, the bond token was first issued in Bitfinex, with the Liquid network managed by Blockstream as its distribution platform.
Volcano Bonds’ Background
Bitcoin bonds are also known as volcano bonds. This is due to the fact that the bitcoins will be powered by the volcanic energy of the Bitcoin City. The instrument would have a market capitalization of $1 billion, according to President Nayib Bakele. After 60 days, the launch of bonds was expected to occur.
The bond launch was however delayed. To support the January launch of digital securities, 20 bills were drafted by Congress Salvadorana. In May, Alejandro Zelaya, the treasury Minister, informed that the launch of these bonds had been put on hold because of market conditions and European war situation. This hint pointed to a launch possible in May or June.
Zelaya explained that it wasn’t possible to issue bonds at the time due to many factors. These included the Russian-Ukrainian Conflict. He explained at the time that cryptocurrency investors were primarily interested in investments in the arms industry.
The government of El Salvador has been heavily criticized for the losses caused by the investments President Nayib Bukele has done, buying the bitcoin “dip” several times.
Let us know your thoughts on the recent delay in the launch the Salvadoran Bitcoin bonds. Leave a comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.