El Salvador postponed the unprecedented issuance of Bitcoin-backed bonds planned for last week.
Quoting Reuters (23/3), Finance Minister Alejandro Zelaya said the delay was because the government had decided to wait for favorable conditions in financial markets.
In fact, the government has scheduled the launch of bonds worth US$ 1 billion on March 15 to March 20. But ultimately, the war between Russia and Ukraine plus the volatility of cryptocurrencies prompted the authorities to change the date.
Meanwhile, the launch could be delayed until September as Bitcoin has slumped since hitting record highs above $67,500 in early November. Bitcoin lost nearly half of its value on January 22, and was trading at US$42,609 on Tuesday (22/3).
Zelaya revealed that the current moment is not the right time to issue bonds. Although Zelaya also said that the ideal date to go to the market is the first half of the year.
"In May or June the market variant is slightly different. September at the latest. After September, if you go out to the international market it will be difficult (to increase capital)," he added.
For information, El Salvador became the first country in the world to adopt Bitcoin as a legal tender last year and has drawn criticism from the International Monetary Fund (IMF), which fears the move could harm the country's finances.
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