- Paolo Ardoino says El Salvador’s bond issue is delayed
- The government has not yet signed the relevant bill
- If this happens in September, it will take 2-3 months to issue bonds
- At best, sales will start at the end of the year.
Bitfinex and Tether CTO Paolo Ardoino said that El Salvador’s BTC bonds will come out at best by the end of this year. Like last time, the release of derivatives was postponed due to problems in the cryptocurrency market.
We covered El Salvador’s BTC-backed bonds in detail back in January. This is an ambitious idea of the government, designed to provide funding for the project “Bitcoin City“.
However, due to the fall in the BTC rate, the initiative was postponed. Initially, it was said that derivatives would enter the market in September. A month later, the former head of the country’s Central Bank said that bonds might not be issued at all due to problems with the IMF.
According to Ardoino, the project is in a “suspended” state. If the authorities develop and sign a bill on the issuance of derivatives in September, the sale will begin at the end of this year.
Bitfinex, which is responsible for the preparation of bonds, was ready to launch the project back in May. But now Ardoino doubts that the idea will be implemented.
In a private conversation, officials said that the draft bill is ready and will be adopted in the coming decades. And although Bukele’s party has huge weight, the signing of the bill will not happen “at the snap of a finger“.
At the same time, the community’s skepticism towards these bonds is growing. Against the background of the fall in the BTC rate and the redemption of government bonds by the government of El Salvador, experts do not believe that the ambitious project will be implemented.