El Salvador postpones Bitcoin bonds to September: Report
The government of El Salvador has reportedly decided to postpone the issue of a Bitcoin (BTC)-backed bond due to the unfavorable market conditions fueled by the geopolitical crisis.
El Salvador’s “Volcano Bond” will not go live in March as the Salvadoran government expected previously, finance minister Alejandro Zelaya said in an interview with a local TV channel.
Zelaya claimed that the delay was due to the volatile prices of BTC fueled by the Russia-Ukraine crisis. He added that the government of El Salvador decided to wait for favorable conditions in the financial market, expecting September at the latest, stating:
At the time of writing, Bitcoin is trading at $42,236, up around 10% over the past 30 days, according to data from CoinGecko. The cryptocurrency has lost nearly 50% of value since the Salvadoran government initially announced plans for its Bitcoin bonds in November.
Zelaya hinted at a potential delay of El Salvador’s Bitcoin bond last week, citing the unstable political situation in the world as one of the biggest reasons for the postponement.
As previously reported, the $1 billion bond was originally scheduled for launch in mid-March. El Salvador congressman William Soriano took to Twitter in early February to declare that the Bitcoin bond was expected to go live by the second or the third week of March.
#BitcoinBonds will be available by the second and third week of march.#Bitcoin https://t.co/e2wL1iBTHr
El Salvador president Nayib Bukele originally announced plans for the bond in November 2021. The bond is reportedly marketed with a 6.5% coupon and a Bitcoin dividend of 50% of the gain in the price of the cryptocurrency after five years. Half of the $1 billion expected proceeds from the issuance are set to go
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