El Salvador’s sudden postponement of its planned issuance of a Bitcoin Bond arose as a result of the current state of the financial market.
El Salvador’s Finance Minister Alejandro Zelaya told reporters on Tuesday that the government had decided to postpone the issuance of the bitcoin bond because they wanted to wait for a stable financial market.
According to reports by Reuters, the government of El Salvador originally planned to introduce the Bitcoin bond between March 15-20, but the Russia-Ukraine crisis and its influence on bitcoin’s price forced the government to modify the timetable.
In lieu of this development, Zelaya stated that the issuance might be delayed until September.
El Salvador’s President Nayib Bukele, announced plans to establish a “Bitcoin City” in November 2021, with the funds coming from the sale of the bonds, which carry a 6.5% yearly coupon.
According to Bukele’s announcement, half of the funding will be used to acquire bitcoin, with the balance going toward infrastructure and geothermal bitcoin mining.
The bonds will not be issued by the government of El Salvador, but by the state-owned thermal energy business La Geo, according to a story in the Financial Times.
Moreover, Americans will be unable to purchase the paper since it will be traded on Bitfinex, which is not available in the United States.
This story is still developing, and we’ll keep you updated as more details emerge.