El Salvador is accused of violating human rights; the Bitcoin bond is on hold
There is no “Bitcoin bond” in the near future, according to El Salvador’s finance minister, because of Bitcoin’s continued volatility. A “human rights crisis” is taking place in the nation at the same time.
As a consequence of the current conflict between Russia and Ukraine, El Salvador’s Finance Minister Alejandro Zelaya has decided to postpone the introduction of the country’s expected billion-dollar Bitcoin (BTC) bond.
“Flagrant abuses of human rights and criminalising individuals living in poverty” were cited by Amnesty International in its report on the situation in El Salvador.
It was questioned by “Frente a Frente” (Face to Face) on Wednesday whether the “a few months ago” $1 billion Bitcoin bond issue had altered, and Zelaya said, “I don’t know.”
In response to a question about whether or not the conflict in Ukraine had affected the price of Bitcoin, he responded, “No. Furthermore, he said that “the fluctuations are continuous, but in the long-term, it always tends to increase in value:” You must gamble on Bitcoin because there is a future and an economic innovation.”
Nayib Bukele, the president of El Salvador at the time, first announced the idea for the bond in November 2021. The other half of the anticipated $1 billion would go toward the creation of a Bitcoin City near a volcano, where geothermal energy may be used to power Bitcoin mining operations. Other cash generated would be invested in Bitcoins.
According to an interview with Zelaya in March, the $1 billion bond was initially slated to go into effect in mid-March 2022, but it was postponed due to market volatility, with a probable launch date of June and a timeframe of up to September 2022 being given.
An $800 million bond due in January 2023 triggered a reduction in El Salvador’s credit rating from Moody’s on May 4, citing the country’s “lack of a viable financing strategy.”
On May 9, Bukele said that the nation has acquired an additional 500 Bitcoins from the government of El Salvador since September 2021. El Salvador’s BTC investments are expected to have cost the country $35.6 million so far.