El Salvador’s $1 billion bitcoin “volcano bonds” have yet to hit the market. Variable international conditions are thought to have played a role in the delay.
El Salvador’s Finance Minister, Alejandro Zelaya, said in a statement last week that the bond sale could take place between March 15 and March 20, but that the transactions could slow down due to the war between Ukraine and Russia: “We have almost completed the necessary preparations, but we will monitor the course of international developments.”
Laws Required for Selling Bitcoin Bonds Not Yet Sent To Congress
However, El Salvadoran officials still have work to do on bonds, but for the past week or two they have been dealing with the effects of the Ukraine war, including supply chain shocks, instead of working on it. According to local newspaper La Prensa Gráfica, as of March 15, the legislation required for bonds has not yet been submitted to Congress.
However, there has been no announcement yet from El Salvadoran authorities regarding the sale of Bitcoin bonds. In addition, the office of the country’s president, Nayib Bukele, did not answer questions about when the estimated new date for the bonds is.
Bonds to be Sell by La Geo
According to a report by the Financial Time, the Bitcoin bonds in question will not be offered by the government of El Salvador, but by the state-owned thermal energy company La Geo. However, due to the fact that the bonds will be offered for sale on Bitfinex, as a result of Bitfinex not operating in the USA, American investors BTC will not have a chance to invest in their bonds.
*Not investment advice.