El Salvador might delay BTC bond launch amid the Russia-Ukraine war conflict because of the strong uncertainty on the market so let’s read more in today’s latest Bitcoin news.
The Finance Minister noted that El Salvador might delay the BTC bond issue because of the war in Ukraine but did mention that the bond was nearly ready however it will affect the time of issuing. The government’s tactics around BTC adoption have been criticized and $1 billion in BTC bonds are intended to fund the Bitcoin City in El Salvador. El Salvador is waiting to release the BTC-backed bond pending developments in the Russian invasion of Ukraine and it is meant to be used to fund the nation’s Bitcoin City and other purchases of Bitcoin. It seems that the glboal events are now getting in the way of the plans.
According to Reuters, El Salvador is weighing international events as it considers the timeline for the BTC-backed bond release. As per the industry’s finance minister, Alejandro Zelaya, the BTC-backed bond can launch in a few days but the war in Ukraine came quite as a surprise:
“We believe that between Mar. 15 and 20 is the right timing, we have the tools almost finished. But the international context will tell us…I didn’t expect the war in Ukraine.”
El Salvador’s president Nayib Bukele announced “Bitcoin City” which will be located near the Conchagua volcano which will be used to power the city and to mien more BTC via geothermal energy. Around 20 bills surrounding the BTC bond were prepared for the El Salvador Congress. The BTC-backed bond will be known as EBB1 and the government plans to issue $1 billion worth of bonds and half of them will go towards buying BTC and the other half towards energy and mining infrastructure so Blockstream will develop the bond on Liquid network and a BTC layer 2 scaling solution.
The country bought 1801 BTC at an average price of $49,100 each so the nation adopted BTC as a legal tender back in 2021 for which it received criticism in the country and also from abroad in part due to the heavy-handed nature of the crypto rollout. The people protested in El Salvador and the IMF was critical of Bitcoin’s status as a legal tender and a planned BTC bond.
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