El Salvador is betting big on the launch of Bitcoin bonds this week

El Salvador is betting big on Bitcoin Bond launch this week - 1628017563 Bitcoin El SalvadorThe timeline for the launch is between March 15th and March 20th. However, geopolitical events such as the war in Ukraine can affect the agenda.

El Salvador's finance minister, Alejandro Zelaya, confirmed that there could be delays due to the ongoing conflict.

“We believe that between March 15th and 20th is the right time. We have almost finished tools. But the international context will tell us… I did not expect war in Ukraine ”.

The 1-year volcano Bitcoin Bond is a vital part of El Salvador's economic revival experiment, in which it hopes to raise $ XNUMX billion. The income from the bonds will be split between the purchase of other assets and the financing of a “Bitcoin City” near the Conchagua volcano in the La Unión region in the south-east of the country.

It focuses heavily on BTC

Former El Salvador central bank president Carlos Acevedo said many doors will close if this is a failure, adding that the bond issuance will define a lot.

Institutional investors are keeping an eye on the bond but staying on the sidelines for now, with most investors expected to be retail, according to the Financial Times.

One such investor, Josué País, the owner of an El Salvadorian taxi business that accepts payments in BTC, said he plans to put about $ 200 into the bond when it launches this week, adding:

“Number one, I will do this to support the country. Number two, because it is a great and attractive bet ”.

Since the country made Bitcoin legal about six months ago in early September, the asset has fallen 28% from a price of just over $ 52.000 on the 7th of that month to around $ 38.000 today.

El Salvador's millennial president Nayib Bukele has "bought the downside" several times on the way down, increasing the country's supply of digital assets.

Bitcoin price outlook

At the time of writing, Bitcoin (you can check out the quotation of Bitcoin in real time) is trading at $ 38.065 after falling 3% in the past 24 hours. The trading session on Monday morning in Asia was once again bearish for the cryptocurrency markets with a loss of 2,4% in total capitalization, which fell to $ 1,77 trillion.

Bitcoin has depreciated 10% in the past month and is currently down nearly 45% from its all-time high of $ 10 on November 69.000.