El Salvador Still not Ready to Launch Bitcoin Bond Says Finance Minister

El Salvador Still not Ready to Launch Bitcoin Bond Says Finance Minister

The first country to adopt crypto, El Salvador is still not ready to launch its Bitcoin bond according to its Finance Minister.

El Salvador’s leaders feel that it’s not the right time to launch its highly-anticipated Bitcoin bond, the finance minister Alejandro Zelaya said. This statement was given via a nationwide TV information which aired on June 1, citing market circumstances after the struggle between Russia and Ukraine.

At first the $1 billion bond was announced to launch anywhere between March 15 and March 20. Anyhow on March 22, Zelaya revealed that the nation was not yet ready for the launch so El Salvador put Bitcoin bond on hold on account of struggles that came with the circumstances from the tussle between Ukraine and Russia.

The federal government had to finalize laws around a framework for regulating digital property at that time.

Meanwhile, economists have shown issues in regards to the nation’s potential to gather funds to cover its impending monetary obligations, which also includes an $800 million bond that will mature during January.

“And as of now, the country is not guaranteed to get that money,” Central American Institute for Fiscal Research (ICEFI) economist Ricardo Castaneda said to a source. 

All things considered, the economist predicts that the nation needs to find approximately $3 billion when additionally contemplating the gap between earnings and expenses by 2024.

Zelaya additionally revealed that talks between El Salvador and the International Monetary Fund (IMF) are happening currently and that there may be an update within the coming weeks. Recently, it was revealed that the IMF started assisting El Salvador in compiling Bitcoin usage stats.

Analysts have questioned El Salvador’s strategy of continuing to buy Bitcoin despite the current price decline. Based on current costs and the price of Bitcoin at the time of purchase, they estimate that the country has lost roughly $35 million on its investments.

El Salvador bought 500 Bitcoins on May 9 when there was a price drop, bringing its complete government purchases to 2,301 Bitcoins.

The mechanics of El Salvador’s Bitcoin transactions have not been entirely clear when requested if or if not the nation has sold any Bitcoin. Zelaya revealed that “a part” of the nation’s Bitcoin was sold to fund the Chivo Pets pet hospital.

Nayib Bukele, the president of El Salvador, said that the project was funded with a $4 million “surplus” based on ups and downs in Bitcoin prices. Zelaya also mentioned the role of El Salvador’s Bitcoin trust fund, which permits the country to support both U.S. dollars as well as Bitcoin.

Zelaya then expressed that the nation is going to hold onto its Bitcoin. “We are not selling the coins that we have bought in this moment,” said Zelaya.

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