Why El Salvador's Bitcoin Bond Will Take More Time?
El Salvador's Bitcoin bond will now be released
later than originally planned, according to Bitfinex and Tether CTO Paolo Ardoino's recent statement.
El Salvador has been working on its Bitcoin bonds ever since the country approved Bitcoin legal tender last year. The launch, however, had previously had numerous delays, and there may still be more to come! The Latin American nation had earlier postponed the launch in March 2022 due to unfavourable market circumstances. Further, they don't have a defined schedule. Some market analysts think there isn't enough investor interest, while others are beginning to wonder if it will ever change.
Currently, Bitfinex is the only exchange that offers El Salvador's Bitcoin Bond. Bitfinex's Ardoino earlier in Mary stated that he was awaiting the Latin American nation's passage of its digital securities bill. This would open the door for Bitfinex to take over as the bonds' technology supplier. At the time, Ardoino anticipated that the token will go live by the middle of September. Even though the deadline is drawing nearer, the law is still far from being finished.
The Bitcoin Bond's final draught is complete.
Ardoino claimed in his interview with Fortune that El Salvadorian government representatives informed him that the final text was ready and would be passed in a matter of weeks. They haven't yet offered a precise date for the same, though.
The completion of everything else should take two to three months, according to Ardoino. If the legislation is approved by September.
But what if the draught bill is not approved by the El Salvadorian government next month? This might result in a further delay, perhaps until the beginning of 2023. El Salvador's credit rating has suffered as a result of the Volcano tokens' issuance, according to William Snead, a Latin America-focused strategist at BBVA, who spoke with Fortune. According to him, there is very little chance that a crypto bond issuance will be successful or reach the market.
