Legislation Delays Could Be the Reason
Shortly after El Salvador became the first nation to allow bitcoin as legal money during November of this year, the president Bukele announced the plans of raising $1billion via bonds that are backed by bitcoin (BTC). The initial date for the offer was set to 2022 in the early part of the year, however delays have been triggered by the declining value of bitcoin at least partially. Despite having a number of legislators, the President’s New Ideas party must still be able to get the necessary legislation passed in the El Salvadorian Congress so that the bond can be released. Chief Technology Officer for Bitfinex and Tether Paolo Ardoino who has worked extensively in conjunction with El Salvador on the bitcoin project, has said that officials have informed him of the expected the passage of the bill by September. If that happens as per Ardoino it will take between two and three months to release the Volcano Bond, indicating that the sale may occur prior to 2022’s end. Government officials from El Salvador did not immediately respond to a request for information. Alejandro Zelaya, El Salvador’s finance minister, said the bond auction will take place between March 15 between March 20 and the 20th day of March however, he later blamed this delay on account of the ongoing conflict with Russia as well as Ukraine.
Project Still in Planning
It was reported that the Volcano token project is in progress, according to Ardoino. Due to Bitfinex’s role within El Salvador, some people believe that the company along with its business partner, Tether, are the holders of bonds issued by the government. In relation to the investments of the two companies, Ardoino declined to comment. According to data gathered by Bukele, El Salvador has bought 2,301 bitcoins since September, for $103.9 million. These bitcoins are currently worth around $45 million. The most recent transaction was completed on July 30th in which the country paid $19,000 each for 80 bitcoins. Based on William Snead, a Latin America analyst at BBVA the country’s traditional bonds were among the worst returns in the region because of the expected Volcano token’s issuance and the capacity of the government to pay its debt. Snead said he was unsure if the Volcano coin will be launched due to the instability of the crypto market. Alongside the announcement of a $560 million plan to purchase back a portion government debts, in the month of July the Salvadoran government also announced that it will manage its own Volcano token, though Marshik was skeptical about the assertion. “It doesn’t make sense to me,” she said and pointed to the market in which Bitcoin trades and the huge losses. Fortune. This administration has repeatedly over-promised and fell in the middle of expectations.
Bitcoin Beach El Salvador
The government of El Salvador is making a number of improvements to the infrastructure of Bitcoin Beach, a beach located in El Zonte. The use of bitcoin as a means of creating an economy that is circular in the area has brought the beach to prominence. The money are used to construct an additional facility so that visitors will be able to appreciate the area more completely.