El Salvador, the Central American nation which made the decision of adopting Bitcoin (BTC) as a legal tender in September of last year, has pushed back the unveiling of its billion-dollar BTC again, as reported by Cointelegraph.
According to Cointelegraph, the BTC bond, also known as the Volcanic token, was first announced in November, 2021, as a method to issue tokenised bonds and raise one billion dollars in return from investors. The fundraiser is then planned to be used for building a Bitcoin city and buying more BTC. In the Q1, 2022, the bond was ready to be introduced but got postponed to September due to unfavourable market conditions and geopolitical crises. However, Paolo Ardoino, chief technology officer, Tether, and Bitfinex revealed that the Bitcoin bond will be delayed again to the end of the year. Ardoino shared that the current delay in launch could be attributed to the internal security concerns due to the nation’s security forces having to confront gang violence in the country.
On the basis of information by Cointelegraph, Bitfinex is considered a key infrastructure member of the El Salvador government responsible for the processing of transactions from the sale of Volcanic tokens. Bitfinex is needed to get a license of issuance from the government, which would be granted after approval of the digital securities bill in September. Ardoino gave the confirmation that the bill’s final draft is prepared and is expected to be approved in the upcoming weeks. “We hope that the law will obtain approval from Congress in the coming weeks, assuming that the country has the stability for such legislation to pass,” Ardoino said.
Moreover, Cointelegraph noted while several reports and market experts have blamed waning investor interest and the current downturn in the cryptocurrency market, Ardoino believes the idea behind the Bitcoin bond would get investors’ interest irrespective of the market conditions.
(With insights from Cointelegraph)
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