El Salvador was supposed to sell $1 billion in Bitcoin volcano bonds last week, but things don’t appear to have gone as planned. According to Reuters, El Salvador Finance Minister Alejandro Zelaya stated that they would wait for favorable market conditions before releasing these bonds.
However, increasing inflation and geopolitical issues have put a lot of stress on assets like crypto. And with that the government had planned to introduce the bonds between March 15-20.
Bitcoin bond could be introduced till the end of the September by this year as per the report. Bitcoin(BTC) has already corrected 40% from its high of $69,000 in November 2021, and is presently trading around $42,200.
According to finance minister Zelaya, it’s not a good moment to launch a bond. And with that in a conference he specifically said that the wise time was to go to the market in the first half of the year.
The aim of launching the bond is to restructure its sovereign debt. But many big financial institutions like the IMF have tried their best to stop El Salvador to reverse its decision from making Bitcoin as legal tender by claiming that it adds to the country’s financial instability. In contrast to this, other countries such as Mexico, are eager to follow suit and make Bitcoin legal.