Monday, December 5, 2022
 

Tether CTO: Security Reasons Delay El Salvador BTC Bond

  • El Salvador’s Bitcoin bond has again been delayed, disclosed Tether CTO.
  • The current delay is a result of unfavourable crypto market conditions and internal security reasons.
  • The rise of gang violence in the county has contributed to security reasons and forced El Salvador’s security forces to take action.

The Central American country, El Salvador has postponed the launch of the billion-dollar Bitcoin bond to the end of the year due to security reasons, as disclosed by Bitfinex and Tether Chief Technology Officer, Paolo Ardoino.

El Salvador adopted BTC as a legal offering in September of 2021. In November 2021, the announcement for the Bitcoin bond, or the Volcanic Bond, also known as, the Volcanic Token was made. This initiative was in order to issue token bonds and fundraise $1 billion from investors.

Later, the sum would be utilized to build a Bitcoin city or purchase more BTC.

Nevertheless, the bond that was set to launch in Q1 of 2022, was postponed to September due to unsteady conditions including unfavourable crypto market positions and geopolitical crisis in the area.

However, the bond was once again postponed this month till the end of the year, announced the Bitfinex and Tether CTO. Moreover, Ardoino encouraged users to understand that the delay is part of a bigger challenge that the nation’s security currently faces with rising gang violence.

Bitfinex serves as the key infrastructure partner for the government of El Salvador processing transactions from the Volcanic Tokens sales. But, Bitfinex needs a license of issuance from the El Salvador government first, which will be granted once the digital securities bill passes this September.

The Tether CTO stated, “We are confident that the law will obtain approval from Congress in the coming weeks, assuming that the country has the necessary stability for such legislation to pass.”

  • El Salvador’s Bitcoin bond has again been delayed, disclosed Tether CTO.
  • The current delay is a result of unfavourable crypto market conditions and internal security reasons.
  • The rise of gang violence in the county has contributed to security reasons and forced El Salvador’s security forces to take action.

The Central American country, El Salvador has postponed the launch of the billion-dollar Bitcoin bond to the end of the year due to security reasons, as disclosed by Bitfinex and Tether Chief Technology Officer, Paolo Ardoino.

El Salvador adopted BTC as a legal offering in September of 2021. In November 2021, the announcement for the Bitcoin bond, or the Volcanic Bond, also known as, the Volcanic Token was made. This initiative was in order to issue token bonds and fundraise $1 billion from investors.

Later, the sum would be utilized to build a Bitcoin city or purchase more BTC.

Nevertheless, the bond that was set to launch in Q1 of 2022, was postponed to September due to unsteady conditions including unfavourable crypto market positions and geopolitical crisis in the area.

However, the bond was once again postponed this month till the end of the year, announced the Bitfinex and Tether CTO. Moreover, Ardoino encouraged users to understand that the delay is part of a bigger challenge that the nation’s security currently faces with rising gang violence.

Bitfinex serves as the key infrastructure partner for the government of El Salvador processing transactions from the Volcanic Tokens sales. But, Bitfinex needs a license of issuance from the El Salvador government first, which will be granted once the digital securities bill passes this September.

The Tether CTO stated, “We are confident that the law will obtain approval from Congress in the coming weeks, assuming that the country has the necessary stability for such legislation to pass.”

 

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