The Central American nation, El Salvador, has already made headlines for accepting Bitcoin as a legal tender. This act occurred in September 2021. In fact, there is a huge lack of consensus among nations regarding the status of crypto coins. Countries like China have declared crypto coins illegal. In such a scenario, the step taken by El Salvador seems all the more significant. In fact, backing a crypto coin that is witnessing a dangerous bear market, is indeed a brave step.
However, the billion-dollar Bitcoin bond of the Central American nation again got delayed. This repeated delay in the bind has naturally caused worry among the users and investors of BTC. If you are interested to know more about this delay, then this article is the perfect stop for you. Keep reading this article to know in detail about the grand BTC bond of El Salvador.
The Billion-Dollar Bitcoin Bond
Volcanic bond or Volcanic token is the name of El Salvador’s Bitcoin bond. Way back in November 2021, the authorities first announced this bond publicly. This bond is a way of issuing token based bonds and raising $1 billion from the investors, in return. The fund thus raised would then go into the creation of a new Bitcoin city and buy some more BTC.
The authorities initially planned to launch this grand bond in the first quarter of 2022. But this deadline incidentally got postponed to September. The reason for this was the ongoing geopolitical crisis and the unfavourable condition of the market. However, Paolo Ardoino, the Bitfinex and Tether chief technology officer, recently state that the bond will get delay further. The new deadline is set at the end of this year.
The cause of the delay, as Ardoino informed the Cointelegraph, is the internal security issues in El Salvador. There are cases of gang violence within the nation and the security team is working to suppress that. Therefore, the focus of government resources has now shifted to that issue. However, Ardoino also assured us that the final draft of the bill is ready and the passing of the same is going to occur soon enough. However, that also depends on whether the party of president Nayib Bukele remains in power.
Concluding Lines
Addressing the issue of licencing, Ardoino stated that once the bill achieved the status of a law, they will apply for a licence “ to operate under the El Salvador digital securities regulatory framework”. He also sound confident as he state that this bond by El Salvador will be able to garner popular interest in Bitcoin. Now it remains to see when the bond sees the light of the day.
Also read: CoinGecko: Which US State Is Highly Interested In Bitcoin & Ethereum?
