El Salvador Bitcoin bond delayed due to security concerns: Tether CTO
The Bitcoin bond was announced in November last year and was originally scheduled to launch in the first quarter of 2022.
New
El Salvador, the Central American country that adopted Bitcoin (BTC) as legal tender in September last year, has again delayed the launch of its $1 billion Bitcoin bond.
Bitcoin bond, also known as volcano bond, or volcano token, was first announced in November 2021 as a way to issue token bonds and raise $1 billion in return with investors. The fundraiser will then be used to build a Bitcoin City and buy more BTC.
The issuance was scheduled to be issued in the first quarter of 2022, but was postponed to September due to unfavorable market conditions and geopolitical crises. However, earlier this week, Paolo Ardoino, Chief Technology Officer at Bitfinex and Tether, revealed that the Bitcoin bond would be postponed again until the end of the year.
Ardoino, in an exclusive chat with the Cointelegraph, revealed that the current launch delay could be attributed to internal security issues where the country's security forces have had to deal with the scourge of gang violence in the country . This diverted attention from government resources, and "the delay in the launch of the Volcano Token should be seen in this context."
Bitfinex is the main infrastructure partner of the Salvadoran government responsible for processing transactions arising from the sale of Volcanic tokens. However, Bitfinex must first acquire an issuance license from the government, which would be granted after the passage of the Digital Securities Bill expected in September.
Ardoino has confirmed that the final version of the bill is ready and expects the bill to pass in the coming weeks as President Nayib Bukele's party holds the majority. He said:
"We are confident that the law will gain congressional approval in the coming weeks, assuming the country has the stability necessary for such legislation to pass."
Bitfinex Securities El Salvador, S.A. de...
The Bitcoin bond was announced in November last year and was originally scheduled to launch in the first quarter of 2022.
New
El Salvador, the Central American country that adopted Bitcoin (BTC) as legal tender in September last year, has again delayed the launch of its $1 billion Bitcoin bond.
Bitcoin bond, also known as volcano bond, or volcano token, was first announced in November 2021 as a way to issue token bonds and raise $1 billion in return with investors. The fundraiser will then be used to build a Bitcoin City and buy more BTC.
The issuance was scheduled to be issued in the first quarter of 2022, but was postponed to September due to unfavorable market conditions and geopolitical crises. However, earlier this week, Paolo Ardoino, Chief Technology Officer at Bitfinex and Tether, revealed that the Bitcoin bond would be postponed again until the end of the year.
Ardoino, in an exclusive chat with the Cointelegraph, revealed that the current launch delay could be attributed to internal security issues where the country's security forces have had to deal with the scourge of gang violence in the country . This diverted attention from government resources, and "the delay in the launch of the Volcano Token should be seen in this context."
Bitfinex is the main infrastructure partner of the Salvadoran government responsible for processing transactions arising from the sale of Volcanic tokens. However, Bitfinex must first acquire an issuance license from the government, which would be granted after the passage of the Digital Securities Bill expected in September.
Ardoino has confirmed that the final version of the bill is ready and expects the bill to pass in the coming weeks as President Nayib Bukele's party holds the majority. He said:
"We are confident that the law will gain congressional approval in the coming weeks, assuming the country has the stability necessary for such legislation to pass."
Bitfinex Securities El Salvador, S.A. de...
What's Your Reaction?
