El Salvador’s volcanic bonds were postponed again due to Bitcoin (BTC) collapse by DailyCoin

©Reuters. El Salvador’s Volcanic Bonds Postponed Again Due to Bitcoin (BTC) Plunge

Despite grand plans for Volcano bonds backed by (BTC), El Salvador faces a bumpy road as President Nayib Bukele’s government faces a lack of interest from investors, legal ambiguity, and massive debt looming as of January 2023 Amid the confusion, Paolo Ardoino, the CTO of both (USDT) and the Bitfinex crypto exchange, has stepped in to make his prediction of when the much-anticipated bonds will be available.

El Salvador’s bitcoin bond issue will be further delayed until later this year, Bitfinex and Tether CTO Paolo Ardoino said. https://t.co/mKERdfXoqv

— FORTUNE (@FortuneMagazine) August 30, 2022

El Salvador’s Bitcoin (BTC) One Year Anniversary

It is worth noting that it has been almost a year since the small Latin American country made the top crypto asset legal tender. Although the Volcano bonds have already been delayed three times, the country has made significant progress in the tourism sector.

Furthermore, the uphill battle with the local street gangs has finally borne fruit as people around the world, including locals, no longer see El Salvador as the murder capital of the world. Finally, volcanoes could actually help the country to innovate, as a geothermal power plant in El Salvador is already using a real volcano to reduce CO2 emissions.

A geothermal power plant in El Salvador uses a volcano to reduce the carbon footprint of bitcoin mining pic.twitter.com/gRRmjTFu5K

— Mashable (@mashable) August 31, 2022

Legislative backlash as BTC gets gossip by bears

Ardoino announced that Congress was due to pass digital securities legislation as early as May, but the process is on hold. However, government officials claim to have prepared a final draft of the bill. The bill is likely to pass during this fall session because President Bukele’s New Ideas Party has the majority of votes in Congress.

Additionally, El Zonte Capital, the Bitcoin (BTC) ambassadors in the region, announced the new timeframe for the release of Volcano bonds to the end of 2022. The Volcano token’s funding round is said to be $1 billion. Opinions differ as to whether El Salvador can raise the money. For example, William Snead, a strategist at BBVA (BME:), sees no adoption of Bitcoin-backed Volcano bonds at all.

Volcano bonds are not yet ready for a breakout

Additionally, Bitcoin (BTC)’s falling price is causing turmoil among investors as it prevents a smooth launch of the much-anticipated token. Nayib Bukele’s crypto portfolio is in deficit at $58 million. Furthermore, the only profitable purchase right now is Mr. Bukele’s latest investment: the 80 bitcoins (BTC) bought for $19,000 each. It can be argued that counting losses at this point is narrow-minded when dealing with a long-term investment, as explained by Finance Minister Alejandro Zelaya.

Still, El Salvador risks defaulting on an $800 million loan as early as January, so the relentless bear market isn’t helping.

Correction: “If El Salvador succeeds with #Bitcoin Volcano Bond…” @SimonDixonTwitt https://t.co/V3IlQ0qHL0

— ₿itcoin Xoe (@Bitcoin_Xoe) August 28, 2022

On the flip side

• While El Salvador’s Nayib Bukele and his New Ideas Party hold a majority in the country’s Congress, there’s a strong chance the digitization bill will pass. On the other hand, like-minded CAR President Faustin Touadera isn’t so lucky. The Central African Republic’s Supreme Court dismissed the Sango Project’s efforts, claiming that electronic residency and citizenship cannot be bought.

Why you should care

With El Salvador becoming the first country in the world to announce Bitcoin (BTC) as legal tender, the development of the small Latin American country is critical to crypto growth.

Learn more about how making Bitcoin (BTC) legal tender has impacted everyday life in El Salvador

Read about a like-minded country, Central African Republic, and their path to a better future

Check out Nayib Bukele’s Golden Bitcoin (BTC) City model powered by a volcano core

Read more on DailyCoin

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