The launch of El Salvador’s Bitcoin bonds, issued to partially finance the construction of the country’s Bitcoin City, has been delayed again. Paolo Ardoino, CTO of Bitfinex, the exchange on which these bonds will be offered, said in a recent interview that the legal framework required for the issuance of these digital securities is not yet ready.
El Salvador to Delay Bitcoin Bond Launch
According to a report coming from Bitfinex CTO Paolo Ardoino, the launch of El Salvador’s iconic bitcoin bond that was announced last year to help fund the construction of Bitcoin City will be further delayed In a recent interview provided to Fortune Ardinosaidthat the legal framework supporting this issuance is not yet ready.
Ardoino did, however, make a prediction about the date of the bond launch. He declared that.
If the law passes by September, it would be reasonable to take two to three months to develop everything else.
The bond tokens will reportedly first be issued on the Bitfinex exchange and use the Blockstream-controlled Liquid network as a platform for distribution.
Background on the Volcano Bond
The bitcoin bond, called the Volcano Bond, was first announced in November 2021 because of the geothermal energy used in mining operations at Bitcoin City. President Naib Boukere aimed to raise $1 billion with this financial instrument. The launch of the bond was expected to take place 60 days after this announcement.
However, the bond launch was postponed. The Salvadoran Congress drafted 20 bills to support the launch of these digital securities in January. Then in May Finance Minister Alejandro Celaya informed that the launch of the bonds was on hold due to market conditions and the war situation in Europe, and suggested the possibility of a launch in May or June.
In a June interview, Seraya revealed that it was not possible to launch the bond at that time due to several factors, including the conflict between Russia and Ukraine. He explained that many investors who were interested in cryptocurrency products at the time shifted their focus to investments related to the arms industry.
The government of El Salvador was heavily criticized for losses from investments made by President Naib Bukele, who purchased several bitcoin “dips.”
Image credits: Shutterstock, Pixabay, Wiki Commons