El Salvador says Ukraine is factor in bitcoin-backed bond timing

A illustration of the digital cryptocurrency Bitcoin is seen on this image illustration taken October 19, 2021. REUTERS/Edgar Su//

SAN SALVADOR, March 11 (Reuters) – El Salvador is in search of the suitable timing to launch a bitcoin-backed bond, which may occur between March 15 and 20 however might depend upon the warfare in Ukraine, the Central American nation’s finance minister Alejandro Zelaya mentioned on Friday.

President Nayib Bukele goals to subject his nation’s first-ever $1 billion bitcoin-backed bond this month and use the proceeds to purchase extra cryptocurrencies and construct “Bitcoin Metropolis” – a deliberate metropolis that might use geothermal vitality from a close-by volcano to “mine” the digital cash.

“We consider that between March 15 and 20 is the suitable timing, we’ve got the instruments virtually completed. However the worldwide context will inform us … I did not anticipate the warfare in Ukraine,” Zelaya instructed an area TV channel.

The bond has confronted headwinds as intensifying volatility rocks the cryptocurrency, with Russia’s invasion of Ukraine including to the uncertainty.

“We’re nonetheless ending some particulars, virtually every thing is prepared, the factor is there may be additionally a timing subject,” Zelaya mentioned.

Bitcoin , hit a file excessive above $67,500 in early November, however misplaced virtually half its worth by Jan. 22.

Reporting by Nelson Renteria; Writing by Anthony Esposito; Enhancing by Frank Jack Daniel

Our Requirements: The Thomson Reuters Trust Principles.