Paolo Ardoin: “The launch of BTC-backed bonds will take several months” – Bits Media

The technical director of the Bitfinex cryptocurrency exchange, Paolo Ardoino, said, that El Salvador will postpone the launch of Bitcoin-backed bonds due to the unpreparedness of the state's legal framework.

Last November, El Salvadoran President Nayib Bukele (Here's to watching) announced intention to launch Volcano Bonds, Bitcoin-backed. They will be used to finance the Bitcoin City infrastructure, which will become an area for the development of technological innovation and a tax haven. This project will include $1 billion from the sale of bonds. Bitfinex management supported this initiative and expressed its readiness to place these bonds on its platform.

However, in a recent interview, Bitfinex CTO Paolo Ardoino (Paolo Ardoino) stated, that the government of El Salvador may again delay the launch of bonds. He suggested, what if the law, relating to the launch of these digital securities, will be accepted in September, then it will take another two to three months to implement the regulatory framework.

This is not the first time that the launch of BTC-backed bonds has been delayed.. In June, El Salvador's Finance Minister Alejandro Zelaya (Alejandro Zelaya) reported, that this event will have to be postponed due to the high volatility of the cryptocurrency market and the difficult geopolitical situation in connection with the military operation in Ukraine. Besides, many investors, interested in cryptocurrencies, began to invest in the arms industry, Zelaya added.

International Monetary Fund (IMF) disapproves of the actions of the government of El Salvador and sharply criticizes it for buying Bitcoin. At the beginning of the year, the IMF demanded, for El Salvador to revoke Bitcoin's legal tender status and narrow the scope of its Bitcoin law.