Join our Telegram Channel to get current information on current news coverage
The Bitcoin bond was originally thought to be available for sale in the first quarter of 2022 when it was first revealed in November last year.
Central American country El Salvador, which recognized Bitcoin (BTC) as legal tender in September of last year, has again announced plans to issue a $1 billion Bitcoin bond. Bitcoin bonds, commonly known as volcano bonds or volcano tokens, are set to issue a tokenized bond in November 2021 and raise $1 billion from investors. The money raised will go towards creating Bitcoin City and buying more BTC.
The bond was originally scheduled to be issued in the first quarter of 2022, but due to weak market conditions and international crises, the date was moved to September. According to Paolo Arduino, Chief Technology Officer of Bitfinex and Tether, who made the announcement earlier this week, the Bitcoin bond will now launch by the end of the year.
Security concerns
In an exclusive interview with Cointelegraph, Arduino revealed that the current launch delay could be due to internal security concerns as the country’s security forces are forced to deal with gang violence. As a result, government resources have been diverted, and “the delay in the launch of the Volcanic token should be taken into account in this case,” the report said.
Bitfinex, a major infrastructure partner of the El Salvadorian government, is hosting the sale of Volcano tokens. But before the government gives permission to issue securities to Bitfinex, the digital securities bill, which is scheduled to be approved in September, must first be approved.
The final draft has been drafted and they expect it to be approved in the coming weeks, considering that Arduino and President Naib Bukele’s party has a majority. If the country settles for such a law, he said, “we are confident that the law will receive approval from Congress in the coming weeks.”
After this law came into law, Bitfinex Securities El Salvador, SA de CV continued to “request a license to operate under the El Salvador Digital Securities Regulatory Framework.”
With several papers and industry analysts blaming the downturn in the cryptocurrency market and declining investor interest on these factors, Arduino is confident that investors will be interested in the concept of Bitcoin bonds regardless of market conditions.
The Bitcoin bond, he continued, could accelerate the adoption of BTC. “When you consider that Memecoin, Dogecoin, can reach a capitalization of 48 billion dollars, there is definitely enough investor interest to sustain a 1 billion dollar volcano in the digital token economy,” he says, using memecoins as an example.
On September 7, 2021, El Salvador declared BTC to be legal tender and subsequently accumulated 2,301 BTC worth approximately $103.9 million. The investment profits were used to build hospitals and schools during the bull market, but now that the market is in a bear market, the BTC holdings are only worth about $45 million.
Related
Tamadoge – Meme Play to earn coins
- Get TAMA in battles with Doge’s pets
- Sealed Supply of 2 Billion, Token Burn
- NFT based Metaverse game
- Presale Live Now – tamadoge.io
Join our Telegram Channel to get current information on current news coverage