El Salvador still postpones Bitcoin Bonds, the bonds will not be issued before the end of the year

It’s been practically a year since El Salvador decided to adopt Bitcoin as legal tender and since then President Nayib Bukele has announced several projects related to Bitcoin, among which the construction of the phantom Bitcoin City financed with the issue of the equally phantom Bitcoin Bond stands out.

Bonds that are not yet on the market: their issue was initially scheduled for the first quarter of 2022 but postponed to this September due to the unfavorable market scenario and geopolitical tensions.

And, apparently, Bitcoin Bonds will be postponed once again, at least as indicated by Paolo Ardoino, CTO of Bitfinex and Tether who cites internal security problems in the country. Warning: this is not about computer security, but precisely about security in the more “traditional” sense of the term with the police who have had to deal with the activity of violent gangs in the country.

A situation that would have diverted the attention and resources of the government and which, according to Ardoino, would represent the context in which to read the further delay in the launch of the Bitcoin Bonds.

Bitfinex is El Salvador’s infrastructure partner for the issuance of Bitcoin bonds, but the popular exchange must first be able to acquire a license from the government, which would in turn be granted following the approval in the country of a law on digital securities, the whose vote scheduled for September. The final draft of the bill ready e
approval should take place within a few weekssince Bukele’s party majority in parliament.

On balance it is likely that the issuance of the Bitcoin Bonds will not take place before the end of the year, unless further unforeseen delays. We remind you that a peculiar feature of Bitcoin Bonds is the possibility of being “tokenized”, that is, of being digitally represented on the blokchain and being able to be split. The government of El Salvador intends issue a first Bitcoin Bond for $ 1 billion, with a ten-year maturity and an interest rate of 6.5%.

According to Ardoino, the market can safely support a 1 billion dollar Bitcoin Bond: the Bitfinex CEO makes the comparison with the most famous memecoin, Dogecoinwhich has been able to raise around a market capitalization of 48 billion dollars.