El Salvador’s Bitcoin Bond Faces More Delay, Here’s Why?

On Tuesday, August 30, Bitfinex and Tether CTO Paolo Ardoino recently said that there will be a further delay in the launch of El Salvador’s Bitcoin bond.

Ever since El Salvador made Bitcoin a legal tender last year, the country has been working on its Bitcoin bonds. However, the launch had been delayed in multiple instances in the past and there could be further delays ahead as well! Earlier in March 2022, the Latin American country delayed the launch citing unfavorable market conditions.

However, they have no clear timeline even further. Some market experts believe that there’s not enough investor interest while others have started doubting whether it shall ever pass.

Bitfinex is currently the sole exchange provider for El Salvador’s Bitcoin Bond. Earlier in Mary, Bitfinex’s Ardoino said that he was waiting for the Latin American country to pass its digital securities bill. This would clear the way for Bitfinex to emerge as the technology provider of the bonds.

Back then, Ardoino had predicted that the token would launch by mid-September. Although the deadline is approaching closer, the bill is far from finalization.

Final Draft for Bitcoin Bond Is Ready

However, during his interview with Fortune, Ardoino said that El Salvador government officials told him that the final draft is ready and that they will be passing it soon in a couple of weeks. However, they haven’t yet provided any specific timeline for the same.

“If the law passes by September, I would expect it to reasonably take two to three months to have everything else rolled out,” Ardoino said.

But what if the El Salvador government fails to pass the draft bill next month? This could possibly mean a further delay even to early 2023. William Snead, a Latin America–focused strategist at BBVA told Fortune that the issuance of the Volcano tokens has brought a bad credit rating to El Salvador. “A crypto bond issuance has a very low probability of success, and is unlikely to come to the market,” he said.