Salvadoran Bitcoin Bonds, according to Bitfinex CTO Paolo Ardoino, will be further delayed. El Salvador’s Bitcoin bond to partially finance the construction of the country’s Bitcoin City has been delayed again. Bitfinex CTO Paulo Arduino said in a recent interview that the exchange on which these bonds will be issued is not yet ready for the legal framework necessary to issue these digital securities. El Salvador Delays Issuance of Bitcoin Bonds. El Salvador’s Bitcoin bond issuance to finance the construction of Bitcoin City, which was announced last year, will be further delayed, Bitfinex CTO Paulo Arduino said. In a recent interview with Fortune, Arduino said that the legal framework to support the launch is not yet ready. However, Arduino disagreed with the release date of the bond. He announced: If this legislation is passed in September, I expect it will take a reasonable two to three months for things to develop. The bond token was first issued on the Bitfinex exchange using the liquid network operated by Blockstream as the distribution platform.
The initial announcement of Bitcoin Bonds, also known as Volcanic Bonds due to the geothermal energy utilised for mining activities in Bitcoin City, was made in November 2021. Vice President Bokele intends to use this instrument to raise $1 billion. The bond issue is anticipated to happen 60 days following this declaration. The bonds’ issuance was delayed, nevertheless. Twenty legislation were submitted by the Salvadoran Congress in January to promote the issue of these digital securities. Finance Minister Alejandro Zelaya hinted that bond issuance may start in May or June when he revealed later in May that it was on hold owing to market circumstances and the current situation in Europe. In a June interview, Zelaya noted that a number of issues, notably the crisis between Russia and Ukraine, prevented the issuance of bonds. He went on to explain that at the time, many investors looking for digital money instruments chose to invest in companies involved in the armaments trade. Vice President Naib Bokele regularly “padded” Bitcoin, which resulted in losses for the government of El Salvador as a result of his investments.
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