Published: 20.04.2022
Article reading time:
2 minutes.
The former chairman of the Central Reserve Bank of El Salvador, Carlos Acevedo, believes that because of the damaged relationship with the IMF, Naib Bukele lost the opportunity to issue bonds for bitcoin.
Salvadoran financial veteran Carlos Acevedo said in an interview that the blind pursuit of financial independence through the adoption of bitcoin as a means of payment cost the country a damaged relationship with the International Monetary Fund (IMF), making issuing bonds based on cryptocurrency virtually impossible.
“Negotiations with the fund are practically dead. They need to be revived. But the president’s desire to launch bonds on bitcoins further complicates the country’s situation,” Acevedo said.
The economist noted that the government has repeatedly postponed the issuance of bonds for bitcoins and expressed the opinion that it signals a “lack of interest” among investors.
“First they said it in January, then in March, then they said that the Digital Assets Law is not ready, then that pensions are a priority, now it’s a security issue. The government realized that there is not enough interest in the markets to acquire this asset,” said Acevedo.
The former head of the Central Bank of El Salvador was supported by economist Luis Membreño. He stated that given the situation, it would be difficult for the government to place $1 billion in Bitcoin bonds.
“I think it will cost us dearly. The opinion of Michael Saylor, who is well versed in this issue, is very clear that the market is not ready to assimilate bonds in bitcoins, so it seems to me that the placement of these bonds is dead,” Membregno said.
He said Treasury Secretary Alejandro Zelaya, who said that the Bitcoin bonds were not issued as planned in the middle of this month because there were no “favourable conditions”, did not specify how the issue regarding the placement of bonds would be resolved in the IMF negotiations. on access to a $1.3 billion loan.
“No one trusts the finance minister anymore. He said so much that was not there that he can no longer be considered a reliable source of information. The trend is that crypto bonds will not stand a chance and I think that moment passed last year,” Membregno said.
He added that in six months, bitcoin has fallen by about 35%, and this does not contribute to creating a favorable climate for issuing bonds based on cryptocurrency.
Source: Bits
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