Alejandro Zelaya, Finance Minister of El Salvador, announced yesterday that the country’s highly-awaited Bitcoin (BTC)-backed bonds will be postponed and may not come until September 2022, depending on whether the crypto market conditions improve soon or not.
According to Zelaya, today’s ultra-volatile BTC prices brought by the ongoing Russian invasion of Ukraine made it all the more apparent that this isn’t the time to issue the bond.
The El Salvadoran government initially planned to issue the $1 billion worth of bonds to investors last week, March 15 and March 20, to be precise. As per the reports, the government aims to convert half of the aforementioned $1 billion bonds to BTC while the other half would purportedly go to the Bitcoin mining and infrastructure sector. Investors would hold on to the sizeable bond for a minimum of five years in exchange for substantial dividends as the country tries to liquidate the BTC.
As of press time, BTC is trading a tad above the $42,000 mark, increasing by about 10% over the past month. To put into perspective how tumultuous the crypto market currently is, when El Salvador first announced its plans for the BTC bonds back in November, BTC’s global price value practically doubles how much it is now.
Interestingly enough, the announcement of the delay came alongside the government apparently slowing the pace at which it purchases new BTC. The El Salvadoran government hasn’t announced any BTC purchases since January 2022 – a stark contrast to the months prior to that when it is announcing consecutive BTC purchases every month.