Changes in the Timing of Bitcoin Bond Issue Due to the Ukraine War

El Salvador has started preparations for an early launch of Bitcoin bonds. However, due to the ongoing war in Ukraine, there may be disruptions in this regard because the government has some plans.

• -The government announced in its statements that these funds will be supported since its 10-year bonds are worth US$ 1 billion. These funds, which will be supported by taxpayer funds and have a period, will provide a return of 6.5%.
• -It was also stated that the cash obtained from the income of these funds and collected from the sales will be used as finance for the creation of a project called Bitcoin City. The purpose of this funding is to help create the project targeting crypto investors and tech pioneers.

The government anticipates that the war on these issues will affect and hinder bond issuance. Faced with this risk, the government also states that Bukele’s bonds will also make a big splash.

An Economic Crisis Occurs in El Salvador Due to the Occupation!

The ongoing war in Ukraine has started to cause an economic crisis in El Salvador. Therefore, the resulting sanctions brought fuel prices to the top. The government also continues to struggle on many issues. In particular, studies have begun on the correction of sudden increases in prices such as oil, LPG, and natural gas.

Alejandro Zelaya, Salvadoran Finance Minister, made some statements about the government. He stated by America Economia that the government is waiting for the right timing and that the necessary tools for export are also prepared. But he added that he remains uncertain about the exact date of this exit due to the war in Ukraine. It is understood that there may be changes in the time of the exit with the course of the war.

• -Analysts and news, stating that uncertainty has increased gradually with Russia’s invasion of Ukraine, also stated that situations that shook the cryptocurrency have emerged with the intensification of volatility. Alejandro Zelaya also stated that they should measure market trends and adjust the timing accordingly. The Prime Minister has stated that he will give detailed information about the details of the issues before the end of the week. For this reason, society began to wait for the details of the exit with the Prime Minister’s statement. Soon, all the details will begin to emerge.