The government of El Salvador has postponed the start date for the issuance of Bitcoin-backed bonds due to the situation in the world and high market volatility.
Salvadoran Finance Minister Alejandro Zelaya on Wednesday, March 23, said that the main reason for the decision was the unfavorable situation in the cryptocurrency market. Initially, the government of the Central American country planned to issue $1 billion worth of bonds between March 15 and 20. It was planned to convert $500 million into BTC, and spend the remaining $500 million on infrastructure for mining the first cryptocurrency. Investors could hold bonds for at least five years and receive dividends
However, current market volatility and the geopolitical situation, Zelaya says, have forced the government to push back the bond issue date to September. Entering the market in the autumn will not be easy either, the minister says, so the government still hopes to issue bonds in the first half of the year.
Blockstream will be responsible for issuing securities. The company aims to expand Bitcoin adoption with the Liquid protocol, which allows the issuance of security tokens and other digital assets.
Earlier, well-known economist Nouriel Roubini said that the crypto-currency adventures of President Nayib Bukele of Salvador would jeopardize the country’s financial system and called on the parliament to impeach the head of state.
Bukele himself turned to US senators who expressed concern about the economic risks associated with the legalization of bitcoin in El Salvador. “El Salvador is not your colony, so stay out of our internal affairs. Don’t try to control what you can’t control.”
Source: Bits
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