El Salvador Postponing Bitcoin Bonuses for the Second Time, Here’s Why


El Salvador has been planning to launch the world’s first Bitcoin bond for a while now. This move had sparked a lot of interest from investors in the space who were hoping to take advantage of this unique opportunity. However, the launch of the bitcoin bonus has now been postponed for the second time. El Salvador finance miner Alejandro Zelaya gives the reason for the multiple delays.

It’s not a good time

The Minister of Finance had anticipated that it was not a good time for the launch of the Bitcoin Bonds of El Salvador. This is due to the fact that the price of bitcoin had decreased and thus had not provided a favorable time for the launch of bitcoin bonds. It has started to upset some in the space because this is not the first time the country has postponed the launch of its infamous Vulcano Bonds, also known as bitcoin bonds.

Related Reading | Bitcoin dominates the derivatives market to end May on a high note

The first time had been at the end of March when the Salvadoran government announced that it had to postpone the launch. The reasons behind the postponement had been the same then as now; the financial market was not in a favorable place for the launch. Introducing an untested bond to the market at a time of high geopolitical unrest may work against the success of that bond.

Bitcoin price chart from TradingView.com

The Minister of Finance, Alejandro Zelaya, explained that the decision to delay the launch once again was “because of the price [of bitcoin]. The price is still interrupted by the war in Ukraine. There were a lot of moves in the stock market.”

However, on the other hand, the postponements are said not to have been due to geopolitical unrest and falling prices. But rather, the interest in these bitcoin bonds was low. This is because investors are not willing to bet their money on an unproven bond that does not promise quick returns.

Although an official date for the placement of the bitcoin bonds has not been announced, the minister said that “the currency is strong” and continues to recover.

Bitcoin from El Salvador

El Salvador has been buying bitcoin since last year when it made the cryptocurrency legal tender. During the time the country started buying bitcoin, it has been trading at one of the highest points of the year. As such, with the recent drop in the value of BTC, El Salvador finds itself at a loss when it comes to its bitcoin holdings.

Related Reading | Brace for Shock: Bitcoin Miners Have Started Dumping Their Assets

However, the country remains unwavering in its determination to add bitcoin to its treasury. The finance minister said that the government continues to hold his BTC despite having a loss of $38 million. According to him, since they have not sold anything, then the country “has not lost” any money.

However, Zelaya revealed that El Salvador had indeed “exchanged” some of its BTC to build Chivo Pet, but that the coins remain in its possession. At the time of writing this article, El Salvador has 2,301 valued at approximately $70 million.

Featured image from Bitcoinist, chart from TradingView.com

To follow Best Owie on Twitter for market information, updates and the occasional funny tweet…


Source link

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *