Facebook Twitter Instagram
    adherents
    • TV
      • Netflix
      • Disney+
      • Amazon Prime
      • HBO Max
    • Celebrities
    • Movies
    • Anime
    • Crypto News
      • Trading software
    • Tech
      • Gadgets
      • Phones
      • Television
    • Reviews Online
    • Contact Us
    Facebook Twitter Instagram
    adherents
    Home » El Salvador postpones the launch of its Volcano Bonds
    Crypto News

    El Salvador postpones the launch of its Volcano Bonds

    By Farwa RazaMarch 24, 2022No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The launch of the “volcano bonds”, that is, government bonds in Bitcoin, in El Salvador seems to have been postponed. The debut was expected between March 15 and 20, but it did not take place. The new speculation is that the launch will take place in September.

    Table of Contents

    • Launch of Volcano Bonds Delayed in El Salvador
    • The sovereign debt revolution
    • When will Volcano Bonds be released?

    Launch of Volcano Bonds Delayed in El Salvador

    The debut of Bitcoin bonds was scheduled for the third week of March, as announced by the local Finance Minister, Alexander Zelaya. To date, the investment vehicle has not yet been launched, suggesting that caution has prevailed. After all, although the demand seems to be very high, Bitcoin is experiencing a time of strong volatility. It is plausible that the government of El Salvador wants to wait for a moment of calm in the markets.

    But even before it sees the light of day, the tool is still making waves.

    The sovereign debt revolution

    Volcano Bonds will revolutionize the debt market as we know it today. Have Bitcoin As collateral, guaranteeing a 6.5% return and promising a 50% dividend after 5 years is a bet on the price of Bitcoin.

    The financial sector is skeptical, so much so that Fitch recently downgraded El Salvador’s credit rating from B- to CCC, blaming this decision on the very choice to have Bitcoin as legal tender. However, according to the Minister of Finance, in statements collected in the Financial Times, the Bitcoin Bond already has orders for more than 1,500 million dollars. Far beyond the initial billion. The point is that this instrument shows how El Salvador wants somehow to free itself from the dollar. However, the dollar is considered reliable, while Bitcoin is a little less so, at least by international finance majors. Not surprisingly, the Telegraph reported verbatim that:

    “Each new initiative, like El Salvador’s bitcoin bond, could undermine dollar supremacy a little bit, which could make the world a little harder to police and a little more dangerous.”

    These statements were commented on by the president of El Salvador, Nayib Bukele:

    “Each new initiative like El Salvador’s bitcoin bond could chip away at the greenback’s supremacy a little, potentially making the world that bit harder to police and a touch more dangerous.”“Making the world that bit harder to police”? WTF?! https://t.co/9i0EEChbVR— Nayib Bukele (@nayibbukele) March 22, 2022

    Who added that:

    “Bitcoin Fixes Colonialism!”

    This explains why they are choosing Bitcoin: an independent currency and not directly linked to the United States.

    Even an observer like Anthony Pompliano is of agree that the Volcano Bonds will be revolutionary: In a Tweet said:

    “El Salvador’s bitcoin-backed volcano bond appears to be setting the stage for a revolution in sovereign debt markets.”

    When will Volcano Bonds be released?

    According to Reuters, citing an interview with the finance minister, Alexander Zelayathe launch will take place no later than September 2022. He stated:

    “In May or June the market variants are a bit different. At the latest in September. After September, if you go to the international market, it is difficult (to raise capital)”.

    Thus, by September 2022, El Salvador will show the world the potential of your government bonds with which he plans to finance the construction of the first Bitcoin City in the world.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Farwa Raza

    Farwa Raza is a writer who specializes in news articles. She has been writing on wttspod.com for over one years, and during that time she has written over 100+ articles on various topics ranging from politics to entertainment. Her goal as an author is to provide readers with the latest news stories while also providing her own opinion on them.

    Related Posts

    Crypto Trading Bots: The Ultimate Beginner’s Guide

    January 2, 2023

    How to Start Trading Bitcoin – Day Trading, Scalping, Hedging, and Technical Indicators

    August 28, 2022

    How to Buy and Sell NFTs

    July 24, 2022
    Facebook Twitter Instagram Pinterest
    • About Us
    • Contact Us
    • Disclaimer
    • Terms And Conditions
    • Homepage news
    • Privacy Policy
    • Use Of Cookies
    © 2023 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.