El Salvador postpones bitcoin bonds, cites poor market conditions as the reason

Finance Minister Alejandro Zelaya of El Salvador, one of the first countries to legalize bitcoin, has said that his country is ready to issue its first bitcoin bond, but is waiting for the right moment. Earlier, El Salvador had estimated the launch of bonds worth $1 billion (about Rs 7,620 crore) between March 15 and 20.

“We are ready for this,” Zelaya said in a news interview. However, at the same time, he said that the government is waiting for permission from President Nayib Bukele for this. Asked if now is the right time for Bond, Zelaya said, “I guess we’ll have to wait a few more days.” He said that he wants its launch between March and April and will not take it beyond September. He told that in May or June the market situation will be somewhat different. It will be difficult to raise funds if it goes to the international market after September.

Earlier, Zelaya said The timing of launching Tha Bond can be a problem. Referring to the war in Ukraine, he said that it is affecting the international market. Bukele last year announced the creation of a bitcoin city with funds from the sale of these bonds. These bonds will earn an annual interest of 6.5 percent. He had told that half of this fund will be invested in bitcoin mining from infrastructure and geothermal energy.

However, Zelaya later said that the bond would not be issued by the government, but would instead be issued by a state-run thermal power company. La Geo Will issue Sovereign guarantees will be provided for these bonds by the government of El Salvador. The government of El Salvador says that giving bitcoin legal status has the advantage of giving a boost to the economy. Some countries are planning to promote cryptocurrencies, while the European Union says that cryptocurrencies should be avoided due to the high risk. In many countries including America, work is also being done on making laws regarding cryptocurrencies.
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