El Salvador Postponed The BTC Bond Due To Unfavorable Conditions

El Salvador postponed the BTC bond because of the unfavorable conditions on the market with the government pointing to market volatility, saying that things could look better by September so let’s read further in our latest Bitcoin news today.

The bitcoin-backed bonds were supposed to launch last week and they might not come until September due to the market conditions. El Salvador’s finance minister Alejandro Zelaya announced the Central American country decided to postpone issuing its bitcoin bond and it awaits market conditions to improve. El Salvador postponed the BTC bond while initially, they planned to issue $1 billion to bonds to investors between March 15 and March 20 with the government aiming to cover the $500 million into BTC and use the other $500 million for infrastrcuture and mining. The investors hold on to the bond for five years receiving the dividends as the country liquidates the BTC with the plan also being referred to as volcano bonds from the proposed use of the volcano as the main power source for mining.

Zelaya said the current market volatility and the war between Ukraine and Russia prompted authorities to postpone the launch date until September but he said they are going out to the market in the fall which will be quite difficult. Zelaya said that now is not the time to issue the bond but he did express hope for a release during the first half of the year. When launched, El Salvador’s BTC bond will be issued by Blockstream which aims to expand BTC adoption using the Liquid protocol. The Network is a bitcoin layer-2 enabling the issuance of the security tokens and other digital assets as well. Last year, El Salvador became the first country to adopt BTC as a legal tender and the move garnered both praise and criticism from governments and regulators.

The IMF said that El Salvador’s embrace of BTC raised a number of macroeconomic and legal issues. Last month, a trio of Senators introduced the Accountability for cryptocurrency in El Salvador Act that will mandate that the State Department creates a plan to limit the risks for the ecosystem caused by the Bitcoin law. The bill noted major concerns with El Salvador’s monetary policy. In the time since El Salvador made BTC a legal tender, BTC hit an all-time high of $68,000 but dropped to its current price of $42,414.