El Salvador has postponed the issuance of the world's first Bitcoin backed bond because the government decided to wait for favorable conditions in the market, as originally clarified by Finance Minister Alejandro Zelaya on Tuesday.
The Central American government had originally scheduled the launch of the $1 billion Bitcoin backed bond between the 15th and 20th of March.
According to Zelaya, the market variants are different in May and June and the ideal date to raise capital is in the first half of the year. The minister also adds that the issuance could be postponed until September at the latest since it is more difficult to raise capital from international markets after September.
After announcing the postponement, President Bukele addressed FUD surrounding the bond, stating the bond would be issued through Bitfinex. He also noted there is a short delay that has to do with a reform being sent to congress first.
The Reuter FUD Bukele alluded to, made the decision regarding the issuance of the bond out to be a sort of safety net in the event that the bond experiment were to fail. Then the government wouldn't have to default on the $800 million Eurobond that matures in January 2023, leading a handful of problems for Bukele a year ahead of the election.
Meanwhile, many prominent Bitcoin and Bukele supporters also stepped in to provide comfort against the FUD. Samson Mow cooled the bond tensions by helping everyone keep their heads.
Disapproval from the IMF
El Salvador's decision to adopt Bitcoin as legal tender has generated considerable criticism from the IMF. For all intents and purposes, the US Dollar is still the world's currency of choice. But the IMF has shown it believes that Bitcoin may be a means of undermining the dollar since it allows payments between two parties without a middleman. The feature, of course, opens the door to the possibility of using Bitcoin as a financial product and service that is accessible to all and controlled by none.
However, betting against the current dollar system is presenting El Salvador with some issues. Discussions between the IMF and El Salvador regarding a $1 billion loan have stalled after the IMF became concerned that the adoption of Bitcoin could threaten the financial stability of the country.
Defending his country's decision, Bukele also tweeted out against recent Bitcoin FUD claims that the move to Bitcoin will make the world a harder place to police (noting that policing shouldn't be the intent of greenback supremacy).