El Salvador: It’s Still Not The Time For The Bitcoin Bonds

According to an interview with the Minister of Finance, the Government of El Salvador continues to delay issuing the highly-anticipated bitcoin bonds because of falling prices.

Alejandro Zelaya (El Salvador’s Finance Minister) stated that it wasn’t yet time for Vulcano Bonds to be launched (bitcoin bonds), because of the “troubled” price of Bitcoin (BTC).

The Government has delayed the launch date for the bonds twice. In an interview, the Finance Minister stated that “Still…it’s not the right time.” This interview was different from previous interviews. Mr. Zelaya didn’t mention any tentative issuance dates.

The risks of Bitcoin Bonds

The Government has not yet announced a date for the launch, but it is important to note that the Government cannot ignore the demand from crypto enthusiasts and investors. These bonds will be a major source of national debt.

The Government should wait for Bitcoin’s price to recover. It is better to wait and back 1 billion dollars with Bitcoin at 60,000 than to do so with BTC swapping at $30,000 per token, even more during a bearish trend. They would also have to pay twice the maturity fees because they are not buying Bitcoin but only obligations in fiat.

Ricardo Castaneda (an economist at the Central American Institute for Fiscal Studies, ICEFI) told The Block El Salvador must pay $800 million in January. “However, right now the country cannot get that money.” Accordingly, Bukele must raise as many money through these bonds as possible without getting deeper into extreme debt territory.

The Government expects to issue Bitcoin bonds totalling one billion dollars.

El Salvador Continues to Buy the Dip

Despite the dramatic fall in bitcoin’s value after it reached $69,000, President Nayid Bukele and his advisors still rely on Bitcoin. El Salvador currently has over 2,301 bitcoins and Bukele is still sticking to his strategy of “buying a dip.”

Zelaya stated that El Salvador plans to sell the cryptocurrencies that it purchased, even though it had a surplus of approximately 4 million Bitcoin.

Although there are no exact dates yet for the launch, it is likely that it will take place before 2022 in order to pay external debts and to prepare for the construction Bitcoin City. This ambitious project, which, aside from mining cryptocurrency, also promotes the creation a paradise for crypto-lovers.

Read More

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami