The government of El Salvador planned to raise $1 billion by issuing BTC-backed bonds, but their issuance was postponed several times. The last time it was delayed indefinitely.
The Legislative Assembly may pass a law necessary to issue Bitcoin bonds in September. This was told to Fortune by Paolo Ardoino, CTO of Tether and Bitfinex. Bitfinex was the main technical partner of the project.
If the law is passed, for which all conditions exist, it will take up to three months to roll out and release Volcano Bond, so the launch can take place by the end of 2022.
Ardoino cited the current state of the crypto market in general and the first cryptocurrency in particular as the main obstacles to issuing bonds. Furthermore, numerous postponements of the issue date and a delay in passing a legislative framework have negatively affected interest in the project from potential investors.
Last time Volcano Bond was scheduled to be issued in March 2022, but as a result, it was postponed indefinitely due to the falling price of BTC. El Salvador currently has 2,301 BTC in its account, with a market value of approximately $46.7 million as of August 31, 2022.
The initial plans of the Salvadoran government were very ambitious: the funds raised by issuing bonds were to be invested in the construction of Bitcoin City, powered by the geothermal energy of the Conchagua volcano. This is the reason behind the bond’s name — Volcano Bond.
