The CTO of Bitfinex recently said that the Salvadoran government delayed the issuance of Bitcoin Bonds again. Since the new tentative launch date is December 2022, American investors will not be able to buy them.
The Salvadoran government has postponed the launch of Bitcoin Bonds again due to the crypto market crash and the delay of necessary legislative processes.
Paolo Ardoino, the CTO of Bitfinex and Tether, recently said that several Salvadoran government officials had contacted him. They wanted to tell him they hope to have the approval of the necessary legislation to issue Bitcoin Bonds shortly.
Ardoino thinks that the launch of Bitcoin Bonds might occur in the coming two or three months. However, the Salvadoran government must first have the necessary laws ready that it promised by mid-September.
The executive said it would take two to three months to implement the rest when the Salvadoran congress passes the law in September.
The Government Delays the Issuance of Bitcoin Bonds over Three Times
The Salvadoran government announced the launch of Bitcoin Bonds in November 2021. Nayid Bukele, the president of the Central American country, declared Bitcoin as a legal tender two months before. However, he has publicly postponed it on more than three occasions.
Alejandro Zelaya, the Salvadoran Minister of Finance, has said over three times they would launch Bitcoin Bonds in the coming months. He pointed out they would do it when Bitcoin recovers its bullish trend, but the price has dropped sharply since early 2022. Besides, many analysts consider it will keep falling in the following months.
That has led William Snead, the Latin American market strategist for BBVA, to classify the bonds as one of the worst yield options. He argued that the issuance of those assets has a very low probability of succeeding and may not go to market.
El Salvador Choose Bitfinex to Provide Its Bitcoin Bonds
Nathalie Marshik, the head of emerging markets sovereign research at Stifel Financial Corp, recently discussed the Salvadoran Bitcoin Bonds. She said that the delay in their issuance might be due to a lack of interest from investors. Since Minister Zelaya has reiterated the purchase interest from many investors, that situation is unlikely.
Marshik commented that El Salvador has historically over-promised and under-delivered, referring to Bitcoin trading and its massive losses.
However, she noted that choosing Bitfinex as the sole exchange provider for the bonds prevents US investors from buying them. It is relevant to remember that the firm announced its exit from the US market several years ago. At the time, it blocked access to its citizens due to government regulations.
Although the government delays the launch of the Bitcoin Bonds again, Bitfinex plans to continue to invest in El Salvador. They have done this with Max Keizer and Stacy Herbert, former Russia Today broadcasters who moved to El Salvador to promote Bitcoin.
Meanwhile, Bitcoin is trading at around USD 20,027 and has accumulated a 1.5% loss over the last 24 hours. While its daily trading volume is above USD 25.62 billion, its market capitalization is about USD 383.43 billion, according to CoinGecko.
By Alexander Salazar
