El Salvador's efforts to launch $ 1 billion worth of Bitcoin bonds had to be postponed due to volatile market conditions.
The decision was announced personally by the Minister of Finance, Alenjandro Zelaya yesterday.
It is understood the bonds were supposed to be launched around March 15-20 this year but the Russian-Ukrainian war affected the price of Bitcoin and forced the government to re-draft their plans.
Zelaya added that Bitcoin bond execution would be better if it took place between March and April, compared to May and June, which could potentially cause sudden market changes.
Meanwhile, in September, it will be difficult to raise bond rates unless the El Salvador government receives funds.
Bitcoin bonds are expected to receive exorbitant demand to reach $ 1.5 billion, thus potentially realizing the establishment of Bitcoin City.
For the record, Bitcoin City is backed through the sale of Bitcoin bonds and is a plan of El Salvador president Nayib Bukele once tabled in November 2021.
Half of the proceeds from the sale of the bonds will be used to buy BTC and the rest will be allocated for infrastructure and Bitcoin mining powered by geothermal energy.
Although this effort was voiced by Bukele, the issuance of Bitcoin bonds is not under the responsibility of the government, but rather belongs to the local geothermal company, La Geo.
At the time of writing, a BTC unit is trading at $ 42,181.30, up over 2% in 24 hours.
