El Salvador’s Bitcoin Volcano Bonds Launch Still on Hold, According to the Treasury Minister – The launch date for Salvadoran bitcoin bonds, the instrument that will be used to fund the construction of the announced Salvadoran Bitcoin City, is yet uncertain.
The debut, which had been planned for earlier this year, has been delayed due to the current conflict in Ukraine and the slowing of global markets. El Salvador is still waiting for good market circumstances, according to Treasury Minister Alejandro Zelaya.
The government is delaying the debut of its Salvadoran bitcoin bonds, which will be used to fund the development of Bitcoin City, a city with no income tax and zero carbon emissions thanks to geothermal energy used to power its operations. El Salvador’s treasury minister, Alejandro Zelaya, indicated that market conditions and the European conflict had influenced the requirements for issuing these bonds.
In a local television interview, Zelaya stated:
“We’re waiting for the perfect time, and the president tells us when. It depends on the state of the market.”
The Salvadoran bitcoin bonds were expected to be released in the first three months of the year, utilizing Blockstream’s Liquid network technology. Since January, the country has advanced regulations for the issue of these debt instruments. The bond issuing time had gone, and the bonds had not been issued.
El Salvador’s Bitcoin Volcano Bonds Launch Still on Hold – Other factors, such as the rapid drop in the cryptocurrency market, are also influencing the issue of the Salvadoran bitcoin bonds, according to Zelaya. This drop in BTC’s price may be scaring investors away from investing in these assets.
However, local economists have other opinions when it comes to the reasons why these bonds have not been issued. A Salvadoran economist, Tatiana Marroquin, told local media that the government’s discrepancies were delaying the bond’s issue from being finalized.
She explained the bitcoin pricing argument:
“Technically, the price argument is invalid; if the price is low right now and people are hoping it will rise, grab a bitcoin bond that is worth 30 right now and will be worth 60 at some time since that would be the best incentive for investors.”