Bitcoin bond still on hold, El Salvador accused of human rights violations
El Salvador’s finance minister Alejandro Zelaya has said the country will further delay launching its anticipated billion dollar Bitcoin (BTC) bond citing price volatility and uncertain market conditions resulting from the ongoing Russo-Ukrainian war.
The news comes at the same time that Amnesty International accused the Salvadoran authorities of “flagrant violations of human rights and criminalizing people living in poverty.”
In a June 1 interview on the local “Frente a Frente” (Face-to-Face) news program Zelaya was asked if the situation with the $1 billion Bitcoin bond issuance from a “few months ago” had changed.
“No, not yet, the [Bitcoin] price continues to be disrupted by the war in Ukraine,” he said according to a rough translation. He added that “in the short term the variations are constant but in the long term it always tends to appreciate in value.”
The plan for the bond was originally announced in November 2021 by El Salvador’s president Nayib Bukele. Half of the $1 billion expected is to fund construction of a “Bitcoin City” built near a volcano with the idea that its geothermal energy could be harnessed for Bitcoin miners. The other half of the funds raised would be invested into Bitcoin.
The $1 billion bond was originally scheduled to launch in mid-March 2022 but in an interview in March Zelaya delayed the launch citing price volatility, giving a possible launch date around June with a timeline extending until September 2022.
Mounting fears that the country could default on an $800 million bond due in January 2023 caused rating agency Moody’s to downgrade El Salvador’s credit rating on May 4 citing “lack of a credible financing plan.”
El Salvador's government has been buying Bitcoin since September 2021 with
Read more on cointelegraph.com
