20th Issuance Delayed? El Salvador's "Bitcoin Bond" May Be Postponed Again, No Official Explanation Given

The Minister of Finance of El Salvador previously announced that the "Volcano Bonds" (Bitcoin Bonds, EBB1) would be delayed until the 15th to 20th, but there has been no movement yet, and there has been no official response, so further delays are possible.

The Minister of Finance of El Salvador, Alejandro Zelaya, previously stated that the volatile situation brought about by the Russia-Ukraine war has necessitated the delay in the issuance of the Volcano Bonds, and there may still be variables as to whether they will be issued by the end of March.

The "Volcano Bonds" is one of the projects proposed by El Salvador's President Nayib Bukele in November 2021 to build a Bitcoin city at the base of the Conchagua volcano. In Nayib Bukele's blueprint, the construction of the Bitcoin city will be financed through the issuance of $1 billion in bonds, hence the bonds are referred to as "Bitcoin Bonds" or "Volcano Bonds," with a term of 10 years and an annual interest payment of 6.5% to its holders.

According to a Cointelegraph report from December 2021, Samson Mow, Chief Strategy Officer of Blockstream, El Salvador's bond issuance partner, revealed that the platform has received "soft commitments" worth $300 million, with the majority coming from Bitfinex whales. However, the relevant legislation for the issuance of the Volcano Bonds has yet to be passed by the Salvadoran Congress.

Cointelegraph reached out to the office of the President of El Salvador for confirmation on the Bitcoin Bonds news but did not receive a response, and Blockstream is also unaware of the new date for the delayed issuance. Despite being a partner, Blockstream only serves as a technology provider, and El Salvador's Bitcoin Bonds will be issued on the Liquid network, which is operated by members distributed worldwide and can issue bonds on Liquid once ready.

Salvadoran President Clarifies on 3/24: Will Collaborate with Bitfinex for Issuance

Salvadoran President responded on 3/25, explaining that the delay in the issuance of the volcano bonds announced 20 days earlier was due to the Salvadoran Congress prioritizing the review of the pension reform bill.

Meeting with Binance Founder Zhao Changpeng

On 3/25, Salvadoran President met with Binance founder Zhao Changpeng, but both parties did not disclose the details of the discussion. The Salvadoran President only stated that the meeting was unrelated to the volcano bonds, but he welcomed Zhao Changpeng's interest in purchasing them.

This article is authorized and reproduced from Horizon News Network