El Salvador’s President Nayib Bukele has condemned a Reuters report that alleged Binance founder Changpeng “CZ” Zhao wants to help the country’s Bitcoin Bond.
“Please don’t spread Reuter’s FUD,” he tweeted. The Bitcoin bond was supposed to launch in mid-March but has been delayed until September.
Legislative Problems In Congress Slow Down Bitcoin Bond
Bukele confirmed that the slowdown in the highly publicized Bitcoin Bond was due to legislative delays in Congress, contrary to some reports.
He added that his meeting with CZ is on a completely different matter and has nothing to do with the bond offering. Cryptocurrency exchange Bitfinex has been given the role of taking over the bonds.
Bitfinex’s chief technology officer, Paolo Ardoino, was also in Bukele’s defense. He stated that the delays were mainly due to bond issuance laws, which are still pending in Congress. He added that speculation that the delay is related to the president’s recent meeting with CZ is false. Blockstream, which is also a partner in the bond’s launch, also stood in Bukele’s defense.
50% of the proceeds from the bond will be used to build Bitcoin City
The company’s former chief strategy officer, Samson Mow, tweeted that “nothing has changed,” referring to Bitcoin bond issuance.
But earlier this week, Alejandro Zelaya, El Salvador’s finance minister, said the bond will be delayed until September this year. He cited geographic instability as the main reason for the slowdown.
After his tweet about Reuter’s report, Bukele returned to Twitter, this time angry about the US government’s bill to reduce US exposure to El Salvador’s financial system. The bill is pending a vote by the entire Senate, subject to preliminary approval. Bukele was agitated that the US government wants to interfere in El Salvador’s affairs.
The Bitcoin-backed bond is being issued to get a bigger BTC reserve and fund the construction of “Bitcoin City”. Half of the $1 billion proceeds will be invested directly in Bitcoin, while the other half will be used for building the city.
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