The Government hasn’t revealed further reports on the regulatory framework for the EBB1 bonds. The conflict between Ukraine and Russia affects world economic growth.
Uncertainty about the conflict between Ukraine and Russia caught the interest of the entire globe. The conflict’s conclusion would be a starting point for El Salvador to reveal the Bitcoin-based Volcano Bonds (BTC).
The release of the EBB1 bonds of El Salvador would take effect soon. However, the finance minister, Alejandro Zelaya, highlighted that this revelation fiercely depends on the current conflict between Ukraine and Russia.
Since November, El Salvador has intended to create bitcoin-based bonds for an amount that surpasses USD 1,000 million since November. The funds will help the Latin American nation increase its bitcoin holdings, currently at 1,800 BTC.
The Central American nation will also dispose of the money collected by the bond issue to support the creation of Bitcoin City. This city will receive energy resources from geothermal electricity generated from the Tecopa volcano and later from the Colchagua volcano.
The Government has not given enough information about the regulatory framework intended for funding Bitcoin Bonds. Still, it is crystal clear that every single event the Central American country had organized with this financial instrument goes through a delay.
Zelaya also highlighted that bitcoin bonds play a vital role in the strategies the Government intends to expand its financing options.
The World Crisis and El Salvador’s Bitcoin Bonds
Last Thursday, President Nayib Bukele revealed a package of measures to soften the economic crisis already harming the South American Nation. The damage caused to the economy reached a critical stage because of the Russian attacks on Ukraine.
Bukele highlighted in a statement on state radio and television that the economic problem caused by the pandemic got reinforced by the conflict currently taking effect between Russia and Ukraine.
The conflict in Ukraine is slowing world economic evolution, warned Kristalina Georgieva, director-general of the IMF, on Thursday, who stated that the context is one of pressure on food prices and decay of consumer and business confidence.
In the face of the current events over Europe, Georgieva revealed that the IMF would suspend its global growth forecast due to the armed conflict; the representative also explained that a Russian default is no longer an improbable event.
Amid the armed conflict raging on in Europe, global investors are snapping up stakes in digital assets funds and entities as they try to generate exposure to a sector that could withstand the fallout from the armed conflict between Russia and Ukraine.
Research firm Fundstrat showed that venture capital investing has significant weekly streams. Since early this year, weekly environmental investments have marked at least $800 million and $2 billion, which would benefit El Salvador with its bitcoin-based bond management.
By: Jenson Nuñez
