El Salvador seems to delay its ‘volcano bonds’ launch

The lack of official announcements suggests that El Salvador’s government has delayed the launch of so-called “volcano bond” securities. Alejandro Zelaya, the Salvadoran finance minister, had been trying to reassure the public that the project would begin by March 20.

El Salvador’s finance minister announced on Friday that the launch “volcano bonds”, also known as the El Salvadoran currency, should be between March 15-20 — the same dates he stated during his February TV appearance. Although Zelaya did mention the instabilities in the political world this time, it could have an impact on the timing.

Nayib Bukele, El Salvador’s president, introduced the project of a “Bitcoin City” with a coin-shaped design at the Conchagua volcano in November 2021. Bukele believed that the $1 billion bond issue would finance the construction of the new town, which would allow crypto mining operations to be carried out and minimize taxes. These bonds, now known as “Bitcoin bond” or “volcano bond”, are expected to last 10 years and to pay 6.5% annually to their owners.

Blockstream’s chief strategy officer, Samson Mow, disclosed that the platform had received $300 million in “soft commitments”, mostly from the “Bitfinex whales” in December 2021. Fernando Nikolic (Blockstream’s marketing director) responded to Cointelegraph in February. He said that Blockstream would announce the matter in Q1 2022.

According to the Financial Times, the Salvadoran parliament has not passed the legislation necessary for the bond sale.

Related: Living on top of a volcano: El Salvador’s outlook for crypto mining

Cointelegraph sent the request to El Salvador’s presidential administration. Nikolic told Cointelegraph that Blockstream does not know the new launch dates because Blockstream isn’t directly working with El Salvador to offer EBB1.

“EBB1” will be issued only on the Liquid Network. It is managed by members distributed around the globe. Blockstream is a technology provider. They will issue Liquid bonds whenever they are available.

El Salvador’s neighbor, Honduras could soon follow it and become the second country in the world to accept Bitcoin (BTC). Some sources claim this is due to the Honduran president Xiomara Cruz’s assertion that El Salvador shouldn’t be the only country “escaping dollar hegemony.”

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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