• The launch of the Crypto Bond that will finance Ciudad’s construction was delayed by President Nayib Bukuele’s government until September.
• The low Bitcoin price and negative outlook have led to Salvadoran authorities deciding not to purchase more Bitcoins.

There are reports that the Salvadoran government may be slowing down purchases of Bitcoin tokens. According to President Nayib Bukele’s administration, there have been no new purchases since the January 2017 purchase.

The Salvadoran government did not issue Volcano bonds as originally planned in March. This was made public this week. Due to better Bitcoin conditions (BTC) the issue of the 10-year bond has been delayed until September. This is despite it being in a losing year.

Alejandro Zelaya (Minister of Finance), released the information regarding the postponement in the Volcano Bond launch. In general, President Nayib Bukele delivers good news when government announcements are made about Bitcoin.

Zelaya, in an interview with local TV, suggested that Volcano’s delay was caused by volatility due to crypto markets, as well as other factors.

“Now is not the time to issue the bond […]The market variations are slightly different in May and June. In September, at the latest. After September, if you go out on the international market, it is difficult to raise capital,” Zelaya was quoted as saying by Reuters.
The Bitcoin-backed Bond will finance construction in Bitcoin City as well as other infrastructure projects in Central America.

Flipside

• The sharp drop in the price of BTC this year and its volatility have raised doubts about El Salvador’s monetary policy based on cryptocurrency.
• El Salvador ended 2021 with nearly 1,400 Bitcoin under its belt. Next, Bukele revealed the purchase of another 1,400 bitcoins at $15 million on January 22.
• The price of Bitcoin has fallen nearly half off since November’s initial Bitcoin bond announcement.

Coindesk reported that BTC was traded for $42,999 at 8:43 p.m. (New York City time).

In the middle of March, the Volcano bond worth $1,000 million would be launched. William Soriano, a Salvadoran legislator, stated in February via his Twitter account (NYSE:), that the bonus might be made available within the second week or third of March.

As President Bukele reported in September, when the bond was first introduced, the coupon will have a 6.5% coupon. The five-year projection for profit is 50%.

500 million USD of proceeds from the Bitcoin Bond will go to building Bitcoin City. The remaining $500,000,000 will be used for the purchase of additional bitcoins.

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