Much-awaited Bitcoin Bond by El Salvador might face delay

El Salvador, which is a source of motivation for many countries, might see a delay in its highly-talked $1 billion Bitcoin bond, which is also called “volcano bond.”

The reason behind this delay is mainly the volatility in the international conditions.

The finance minister of the country, Alejandro Zelaya, who previously informed the world that the bond sale could come between March 15 and March 20, this week noted that the major dispute between Ukraine and Russia could slow down the roll-out process.

A local TV news channel reported him stating:

 “We have the tools almost finished, but the international context will tell us.”

While lawmakers in El Salvador still had work to do on the bonds, they have been busy with the implications of the Ukraine war, including supply chain shocks, over the past week or so. 

According to a report in the local newspaper La Prensa Gráfica, the relevant laws for the bonds had not been sent to Congress as of March 15.

El Salvador Bitcoin City would get funds from the sale

El Salvador President Nayib Bukele announced intentions to establish a zero-carbon emission “Bitcoin City” in November last year as TheCoinRise reported, with the funds coming from the sale of the bonds, which have a 6.5% yearly coupon. Half of the funding will be used to acquire bitcoin (BTC), with the balance going towards infrastructure and geothermal bitcoin mining.

As of press time, no official from the Salvadoran government has made an announcement on the bitcoin bond.

Notably, the bonds will not be approved by the government of El Salvador, but by the state-owned thermal energy company La Geo, according to a report in the Financial Times. Furthermore, investors all over the world can purchase the paper with some exceptions like Americans since it will be traded on Bitfinex, which is not available in the United States.