Skip to main content

El Salvador: Bitcoin bonds are a long time coming

 


El Salvador's finance minister believes Bitcoin's continued price volatility means Bitcoin bonds aren't coming anytime soon. Meanwhile, the country faces a human rights crisis.


El Salvador Finance Minister Alejandro Zelaya said the country will further delay the launch of its expected billion-USD bitcoin bond, citing price volatility and uncertain market conditions resulting from the ongoing Russo-Ukrainian war.


The news comes at a time when Amnesty International is accusing the Salvadoran authorities of flagrant human rights abuses and criminalizing those living in poverty.


In an interview on local news show Frente a Frente, Zelaya was asked if the situation had changed with the planned bitcoin bond.


“No, not yet, the [Bitcoin] price continues to be disrupted by the war in Ukraine,”


He added that fluctuations are constant in the short term, but always appreciate in value over the long term.


“There is a future and an economic innovation [in bitcoin] that we must bet on.”


The bonds were originally announced by El Salvador's President Nayib Bukele in November 2021. Half of the expected $1 billion will go towards building a Bitcoin City, which will be built near a volcano. The idea behind this is that the geothermal energy could be used for bitcoin miners. The other half of the funds are to be invested in Bitcoin.


The $1 billion bond was originally scheduled to launch in mid-March 2022. In an interview in March, Zelaya delayed launch citing price volatility and gave a possible launch date around June 2022 with a timeframe of September 2022.


Fears are mounting that the country could default on an $800 million bond due in January 2023. This prompted Moody's rating agency to downgrade El Salvador's credit rating on May 4 due to the lack of a credible financing plan.


The El Salvador government has been buying bitcoin since September 2021, with Bukele announcing that the country bought another 500 BTC on May 9. The country is estimated to hold more than $35.6 million in BTC.


Meanwhile, Amnesty International accused the government of El Salvador of committing massive human rights abuses through the arbitrary detention, ill-treatment and torture of detainees.


A state of emergency was declared by President Bukele on March 27 due to a rising murder rate the government attributes to gangs and organized crime. The state of emergency was extended twice.


The human rights group said the state of emergency has changed laws and court procedures that undermine the right to a defense, the presumption of innocence, effective remedies and access to an independent judge.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
Clash Of Streamers - Earn Crypto while Playing all for Free! - Play smart! 
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

British financial regulator criticizes cooperation between Binance and Paysafe

  The British financial regulator FCA has expressed concerns about the partnership between market-leading crypto exchange Binance and payment service provider Paysafe. As the British regulator complains, the partnership gives Binance access to the influential British payment network Faster Payments Service (FPS), from which the crypto exchange was previously cut off. Last June, the FCA ordered Binance to stop all business activities in Great Britain. As a result, prominent banks such as Barclays have terminated their cooperation with the leading crypto trading platform . Through the cooperation with Paysafe, Binance can now again offer deposits in British pounds sterling and transactions within the European Payments Area (SEPA). However, this fact is a thorn in the side of the FCA, as it classifies the crypto exchange as a “considerable risk factor”. However, the financial regulator sees little room for maneuver to counteract this, as the Financial Times reports . “ Paysafe understands
Post a Comment
Read more