September 2, 2022 12:07 UTC
| Updated:
September 2, 2022 at 12:07 UTC
El Salvador’s Bitcoin bond, issued to finance part of the development of a Bitcoin city in the country, is set to be delayed again. In a recent interview, Paolo Arduino, CTO at Bitfinex, the exchange where these bonds are offered, has not developed a legal framework for the supply of those digital securities.
El Salvador to delay the launch of Bitcoin bonds
The launch of EI Salvador’s long-term bitcoin bonds, which will be used to support the development of the Bitcoin City announced last year, is about to be delayed, according to reports coming back from Paolo Arduino, CTO at Bitfinex. In a recent interview with Fortune, Arduino stated that the legal framework that could support this offer is still not in place.
However, Arduino has given a prediction on the launch date of the bonds. he said.
“If the bill is passed in September, I expect it will take 2 to 3 months to get ownership of all the releases.”
The Bond Token was originally to be issued on the Bitfinex exchange for its distribution platform using the Liquid network, which is managed by Block Stream.
Background of volcanic bonds
Dubbed Volcano Bonds due to the heat to develop mining operations in Bitcoin City, Bitcoin bonds were initially announced in November 2021. President Naib Bukele intends to raise $1 billion through this instrument. It is noted that the bond launch will take place 60 days after this announcement.
However, the bond launch has been delayed. The Salvadoran Congress wrote twenty bills in January and later, in May, Treasury Minister Alejandro Zelaya said the bond issuance was on hold due to market conditions and conditions. War in Europe suggesting a possible start in May or June.
In an interview in June, Zelaya explained that the bond could not be launched due to the conflict between Russia and Ukraine at the time. At the time, he said, many investors who were curious about cryptocurrency tools made investments related to the weapons industry.
EI Salvadoran government president Naib Bukele has been heavily criticized for losses on his investments, buying bitcoin “dips” several times.
Clark
Head of Technology.