El Salvador has been planning to release the world’s first Bitcoin bond for a while. Investors in this space have been eager to take advantage of the unique opportunity. But, launch of the Bitcoin Bond has been delayed a second-time. El Salvador’s finance miner, Alejandro Zelaya, gives the reason for the multiple delays.
This is not the time to be alive
According to the finance minister, it wasn’t a suitable time to launch the El Salvador Bitcoin Bonds. The reason for this was that bitcoin’s price had fallen and therefore it wasn’t a good time to launch the bonds. Some in the sector are starting to be concerned that this isn’t the first occasion the country has delayed the launch its Vulcano Bonds. Also known as Bitcoin bonds,
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It was late March, when El Salvadorean officials announced they had to delay the launch. There were the same reasons for postponement as today. The financial market wasn’t in a good place to host the launch. It is possible for a new bond to be introduced into the market without being tested. This could hinder its success.
Finance minister Alejandro Zelaya explained that the move to push the launch back once more was “Because of the price [of bitcoin]. The war in Ukraine is still affecting the stock market. There were many movements in the stock market.”
However, there is a side that says the delays were not due to declining prices or geopolitical instability. These bitcoin bonds were not popular, but the interest was very low. Investors aren’t willing to risk their capital on untested bonds that don’t promise fast returns.
Although there has been no official date announced for when the bitcoin bonds will be placed, the minister expressed that “the currency is strong” and continues to recover.
El Salvador’s Bitcoin
Since last year, El Salvador has been buying bitcoins. Since the purchase of bitcoins by the country, the currency has traded at the top of the year. El Salvador is now at risk due to the decline in BTC’s value.
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However, it is not changing its determination to integrate bitcoin into its Treasury. According to the minister of finance, the government is still holding onto its BTC, despite the fact that it has lost $38million. According to him, since they have not sold anything, then the country “has not lost” any money.
Zelaya, however, revealed that El Salvador had indeed “traded” some of its BTC to build Chivo Pet but that the coins remain in their possession. El Salvador has 2,301 worth about $70 million at the time of writing.
Featured image by Bitcoinist. Chart from TradingView.com
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