Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
The Ministry of Finance reiterated that it is not yet time for the issuance of the “Volcano bond”. There is still no launch date, but the government expects a rise in the price of Bitcoin.
- “ It is not yet the time “for the issuance of the bond Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. said the official.
- The launch has been delayed, but El Salvador is still holding on to its bitcoins.
- The government is expecting a spike in the price of cryptocurrencies.
The government of El Salvador is not yet ready for the issuance of its much-anticipated “ bono Bitcoin The “$1 billion,” as reiterated by the Minister of Finance, Alejandro Zelaya.
Announced with much anticipation in November 2021 by President Nayib Bukele, the launch of the so-called “ volcano bonds “has been postponed once again . Originally, they were expected to be launched during the first quarter of this year, with February as a tentative date. The Ministry of Finance had then announced their launch by March 20 at the latest.
However, early last month, Zelaya rejected the idea of a deadline for the launch. At that time, the official said during a television interview that the “conditions “The market an area or arena, online or offline, in which commercial dealings are conducted. was not adequate and that the government was waiting for an increase in the price of oil. Bitcoin for the official issuance of the bonds in question.
This week, Zelaya reiterated this stance during an interview for a local TV show again citing unfavorable cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market conditions caused, in part, by the continuing Russia-Ukraine war. The local media L a Prensa Gráfica quoted the statements.
“ Not yet, it’s not the time “ said the finance minister on Wednesday during his appearance on the program Face to Face . “ Bitcoin] price continues to be shaken by Ukrainian war a” he justified.
No bonus yet, but El Salvador is not selling its bitcoins
During the interview, Zelaya also addressed some questions about the transactions of Bitcoin of El Salvador. The Central American country has been buying funds of the flagship cryptocurrency since it began recognizing it as legal tender last year. El Salvador holds some 2,301 bitcoins according to Bukele’s announcements in Twitter.
Beyond the tweets the president’s transaction scheme, the Bitcoin of the nation has not been clear. According to the minister, who was questioned about it on Wednesday’s programme, “ one part “of the coins were sold to fund the pet hospital. Chivo Pets . However, beyond that transaction, he maintained that the country is not selling or planning to sell its bitcoins .
“ We are not selling the coins we have bought at this time. “ , said Zelaya. “ What El Salvador has is not an investment strategy in the stock market, it is a strategy to implement Bitcoin as legal tender. “, the official added about the role of the national cryptocurrency fund.
As reported byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.Zelaya also said during the interview that talks between El Salvador and the International Monetary Fund (IMF) continue and that there will be an update in the coming weeks.
On the other hand, La Prensa Grafica added that the minister expressed optimism about a price recovery in the cryptocurrency market. Long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. term, Bitcoin “always tends to appreciate in value “Zelaya said when asked about the recent volatility. Throughout 2022, Bitcoin has struggled to stay above $30,000, down more than 50% from its all-time high last year. The rest of the market has also fallen by a similar percentage.
Concerns about the “Bitcoin bonus”.
Meanwhile, the reports point to concerns among economists and observers in general about the country’s strategy around Bitcoin . It is worth noting that the bond funds Bitcoin were intended to be used to finance the construction of Bitcoin City, a city that promises no income tax and carbon neutrality due to the use of geothermal energy.
In this regard, the local media picked up an analysis by Moody’s . The fact that the government prioritizes “ the construction of Bitcoin City and the associated Bitcoin bond issue, at a time when the faces intense funding pressures, rather than clearly identifying a medium-term adjustment path… suggests that ensuring fiscal sustainability, may not be a major policy priority for the Government “.
The agency Amherst Pierpoint added in another report that “ Bitcoin’s weakness and volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. seriously challenges the growth and financing model for El Salvador “, the report quoted him as saying.
According toThe Blockwho spoke to the economist of the Central American Institute for Fiscal Studies (ICEFI) Ricardo Castañeda, These concerns about El Salvador’s ability to cover its financial obligations are supported by estimates that the country needs to find around US$ 3 billion, considering the gap between revenues and expenditures until 2024.
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Article by Hannah Estefania Perez / DiarioBitcoin
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