El Salvador Is Postponing the Launch Of its Volcano Bonds

Keeping in view the scarcity of any formal declarations, the authorities of El Salvador appear to put a delay in the date of launching the well-propagated volcano bonds. Previously, Alejandro Zelaya (the finance minister of El Salvador) had been reaffirming to the common masses that 20th March would be the launch date for the respective project.

On Friday, while talking to a native TV program, the finance minister of El Salvador reiterated that the promoted volcano bonds’ launch should occur sometime between 15th to 20th March. Previously in February, the same dates were declared on the behalf of the minister. Nonetheless, at present, Zelaya discussed the troublesome political scenario across the world to be one of the aspects due to which an impact could be created over the scheduled timing.

In November previous year, Nayib Bukele (the president of El Salvador) introduced Bitcoin city, a project which consists of a coin-based area located on the Conchagua volcano. According to Bukele, the construction of the unique town would start operations of Bitcoin mining, and $1B worth would be issued and the amount of the taxes to be implemented would be minimal. The respective bonds, having acquired substantial popularity as volcano bonds or Bitcoin bonds, are considered to be lasting for 10 years along with paying 6.5% per annum interest to be given to holders thereof.

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In December of 2021, the chief strategy officer at Blockstream (partner of El-Salvador in the launch of the bond) disclosed that the venue had in advance obtained $300M in soft commitments. Fernando Nikolic – Blockstream’s marketing director – claimed that the platform would make a declaration in this respect during this year’s Q1. As reported by the Financial Times, the legislation required to launch the sale of bonds even now has not been approved by the parliament of the country.

Nikolic added that the release of EBB1 would be conveniently be carried out through Liquid Network, being run by participants from all across the globe. Blockstream is known to be the sole technology provider thus on being capable of releasing the bond over Liquid the venue will possibly issue the bond just like the others.

Meanwhile, Honduras (the neighboring country of El Salvador) could turn into another nation throughout the world to formally adopt BTC (Bitcoin) as a means of payment. Some sources point out that, as asserted by Xiomara Castro (the president of Honduras), El Salvador should not enjoy the position of being the only nation to evade the dollar hegemony.