According to a Fortune report, El Salvador’s so-called Bitcoin Bond (Volcano token) project is yet again delayed due to a lack of investor interest and a legislative hold-up. The report also highlights the difficulties that the Central American country is encountering with its ground-breaking project, with some experts questioning whether the project will ever be completed.
In November 2021, President Nayib Bukele released the Bitcoin bond, also called the Volcano token, after 2 months El Salvador legalised Bitcoin. Investors paid $1 billion to the project, half of which went toward infrastructure and the other into Bitcoin purchases. Bitfinex has been selected as the exclusive provider of exchange services.
Paolo Ardoino, Chief Technology Officer of Bitfinex and Tether, who has worked closely with El Salvador’s bond project, says he has been told by officials that the Bitcoin bond will be approved in September.
El Salvador’s Bitcoin bet has long been linked to the launch of the Volcano token. In addition to financing ambitious initiatives like Bukele’s proposed “Bitcoin City,” many analysts believe that the Volcano token campaign will allow the government to avoid debt problems before a potential default. He estimates that it will take another two to three months to roll out the Bitcoin Bond, implying that the sale might take place before the end of 2022.