Bitcoin Bonds to Launch in El Salvador this Summer-According to Bitfinex CTO

The Chief Technical Officer of the cryptocurrency exchange Bitfinex has asserted that El Salvador’s long-awaited Bitcoin (BTC) bonds will launch this year “around June to September,” which is a window of time spanning approximately three months. Nevertheless, as he explained it, the bonds could not actually be bonds after all. The issuance might also take the form of digital securities as an alternative.

Bitcoin Bonds to Launch in El Salvador this Summer

Paolo Ardoino, the Chief Technical Officer of Bitfinex, said during his presentation at Paris Blockchain Week that El Salvador had already completed work on a law that will allow for the issuing of digital securities.

Criptonoticias said that this law has been passed by the National Assembly, but they also said that the country was working on making something that “regulates these assets.” This statement gave the impression that this was the final step required before issuance could occur.

The Chief Technology Officer of Bitfinex, on the other hand, hinted that the offering might not take the form of bonds at all. Instead, El Salvador may elect to release “shares” – or “digital securities.”

Ardoino provided the following explanation:

When the concept of issuing Bitcoin bonds was first proposed, interest rates offered by the US Treasury were significantly lower. And this product, the bonds, would have provided a return of 7% annually had they been purchased.

However, the Chief Trading Officer (CTO) said that because interest rates were “already reaching 4.5 percent,” it would be “difficult to offer these 7% bonds as a product.”

He asserted that “investors’ choice” was for the bonds to be issued “as shares,” and that this was the consensus among investors.

Ardoino said:

“The feedback that we received from potential investors was that they would want to see them more equivalent to the digital shares of an energy firm that is operating in El Salvador or a [Bitcoin] mining company,”

El Salvador’s BTC Bonds – What Is Bitfinex’s Role?

The Central American nation has been working with the company on the project, as well as others, and the bonds (or shares), whichever one is appropriate, will be made available on the trading platform provided by Bitfinex.

El Salvador’s BTC-keen President Nayib Bukele awarded Bitcoin legal currency status in September 2021. Not much time passed until the announcement of the bonds initiative.

The next step, which was taken by the National Assembly, was to draft legislation that would authorize the state to issue Bitcoin bonds. In spite of this, the launch date has been pushed back on multiple occasions by the government as the crypto winter continues to reduce the markets.

The offering is being referred to as the “volcano bonds” in recognition of the numerous volcanic mountains that are located within the country, in addition to the grandiose Bitcoin City project.

Bukele has indicated that it is his goal to use the funds obtained from the sale of bonds to establish a tax-free sanctuary for bitcoin users from other countries. The city will be constructed at the base of the volcano, and a geothermal power station will be situated atop the mountain to mine Bitcoin.

Both Bukele and Bitfinex have expressed their expectation that the offering will bring in approximately one billion dollars.

Bitcoin bitcoin bonds bitcoin news El Salvador