THE ONGOING PRICE VOLATILITY OF BITCOIN INC THE LAUNCH TIME FOR “BITCOIN BOND”
El Salvador Finance Minister Alejandro Zelaya said the country would continue to delay the release of its multi-billion dollar Bitcoin (BTC) bond, citing price volatility and uncertain market conditions as a result of the ongoing Russia-Ukraine war.
The news comes at a time when Amnesty International is accusing Salvador authorities of “violating human rights and criminalizing poor people.”
In Wednesday's interview on the local news program "Frente a Frente" (Face to Face), Zelaya was asked if the status of the $ 1 billion Bitcoin bond issuance since "a few months ago" had changed.
"No, at the moment, the price of [Bitcoin] continues to be disrupted by the Ukrainian war," he said, according to a difficult translation. He added that "in the short term diversity is permanent but over time it is always prone to liking value:"
"There is a future and there is something new economic [in Bitcoin] that we have to bet on."
The bond plan was announced in November 2021 by El Salvador's president Nayib Bukele. Part of the billions of dollars expected to fund the construction of the Bitcoin City built near the volcano, with the idea that its geothermal power could be used by Bitcoin miners. Some of the money raised will be invested in Bitcoin.
The $ 1 billion bond was scheduled to be launched in mid-March 2022 but in March talks, Zelaya delayed the launch, citing price fluctuations, giving a possible launch date of about June and a timeline that lasts until September 2022.
The growing fear that the country may pay a $ 800 million bond in January 2023 has prompted Moody's rating agency to reduce El Salvador's debt rating on May 4, citing "a lack of a reliable funding system."
The El Salvador government has been buying Bitcoin since September 2021, with Bukele announcing that the country has bought another 500 BTC on May 9. El Salvador is estimated to have lost more than $ 35.6 million since its investment in -BTC so far.
Amnesty International: "Human rights crisis"
Meanwhile, the non-profit human rights organization Amnesty International has accused the El Salvador government of committing “grave human rights abuses” by arbitrary arrests, inmates' treatment of prisoners, and the inhuman treatment of prisoners.
The state of emergency (SOE) was announced by President Bukela on March 27 due to an increase in murder rates, which the government blamed on gangs and organized crime. SOE has since been expanded twice.
The human rights organization said the SOE had changed laws and regulations that undermined self-defense, presumption of innocence, problem-solving and access to independent judges.
As the campaign progresses, more than 35,000 people have been detained in less than three months, with an increase in arrests resulting in 1.7% of South Africans under the age of 18 being imprisoned, resulting in over 250% of prisons.
Despite the abuses, however, many El Salvadorans agree with B watching's firm stand, as the president is still popular in opinion polls. A recent poll released by local media on Wednesday shows almost 87% of the current president's approval.