This article is from es.cointelegraph.com and the original article can be read here
The launch of Bitcoin bonds (BTC) or also known as the volcano bonds, announced by the president of El Salvador, Nayib Bukele, in November 2021, is again postponed by the government of that country. As announced by the Minister of Finance, Alejandro Zelaya, on May 2 of this year, when he rejected the issue deadline.
According to what was reported by the digital media, El Mundo, the BTC bond issue was announced by the president of El Salvador, and the Ministry of Finance, “hoped” it to be on the market in the first half of March 2022.
The reason for the delay in launching the bonds, according to the finance minister, is due to the fact that currently at an international level the market conditions are not favorable and they will wait for digital currencies to rise in price. Likewise, he stated that previously the delay was due to Russia’s invasion of Ukraine.
“As the price quoted (bitcoin) against strong currencies is affected, for some investors this discourages the purchase of the bond, so it should normally be done when the price is high. Why? Because when we say that the price is high, it is when it is really being measured against dollars, so for each bitcoin they are going to give you more dollars. So, I have an incentive to buy the bond with bitcoin and thus be able to earn because my national accounts are in dollars,” Zelaya explained.
In this context, the Treasury rejects the opinion that it is a failed operation: “Nobody can say that “this is a fiasco” because the stock market conditions have not been adequate”.
He further noted adding that, “The President of the Republic (Bukele) is the one who tells us the right time, according to how we see the market.”
In addition, the Salvadoran president “called on” all investors to acquire the bonds, which will have an “oversupply” imposed by the State of USD 1,500 million.
The Government of the region has not been able to secure a key fiscal agreement with the International Monetary Fund (IMF) that will allow access to the traditional international investor market, which has the consequence that the market is waiting for the launch of the bitcoin bonuses or volcano bonuses.