Bitfinex and Tether’s Chief Technical Officer, Paolo Ardoino, has made the announcement that the debut of El Salvador’s Bitcoin bond would be further postponed because of a lack of investor interest as well as a holdup caused by legislative inaction.
The inaugural announcement of the Bitcoin bond, also known as the Volcano token, was made by President Nayib Bukele of El Salvador in November 2021, two months after the country had embraced Bitcoin as legal cash.
Investors contributed one billion dollars to the initiative, with half of that amount going toward funding infrastructure improvements and the other half going toward purchasing Bitcoin. It was decided that Bitfinex will be the only exchange provider to be used.
Soon after El Salvador emerged as the first nation in the world to recognize bitcoin as legal cash, President Najib Bukele revealed intentions to raise $1 billion in November 2021 using bonds backed by Bitcoin (BTC).
These plans were disclosed by President Najib Bukele. The sale was meant to get underway at the beginning of 2022, but it has been delayed, at least in part because of the precipitous decline in the price of bitcoin.
Despite this, when speaking to Fortune, Ardoino did mention that the government of El Salvador is working on the final text of the document. In addition to this, the government authorities informed him that he should anticipate a passing by the month of September.
In the event that this scenario played out, Ardoino estimates that it will be another two or three months before the Bitcoin bond or Volcano Token can be distributed to the public. In light of this information, it is possible that the sale will begin near the end of the year 2022.
