El Salvador’s President Nayib Bukele took to Twitter on Wednesday night, lashing out at a Reuters report claiming that Binance CEO Changpeng Zhao (CZ) arrived to rescue El Salvador’s Bitcoin Bond.
“Please don’t spread Reuter’s FUD,” Bukele tweeted to his 3.6 million followers, dismissing claims that CZ flew in to help after the $1 billion bond issue originally scheduled for mid-March was closed. postponed to Sept. He responded to a tweet on the topic by Bitcoin Magazine, which has now deleted the post.
The short delay in the issuance is only because we prioritize internal pension reforms and we need to send that to Congress sooner. https://t.co/chUGgdDBDc
— Nayib Bukele (@nayibbukele) March 23, 2022
Bukele stated that the delay in offering the “volcano bond” was primarily due to legislative delays in Congress, that his meeting with CZ has nothing to do with the bond offering and that the pair plans to “use other problems” to discuss.
Paolo Ardoino, CTO of Bitfinex – the company underwriting the bond – came to Bukele’s aid stating that the delays were largely due to bond issuance laws that had yet to be passed by Congress. Samson Mow, former chief strategy officer Blockstream — El Salvador’s partner in the bond’s launch — also joined in, tweet that “nothing has changed”.
Earlier this week, El Salvador’s Treasury Secretary Alejandro Zelaya said the $1 billion bond, originally scheduled for mid-March, would be delayed until September, with geopolitical instability being the main reason for the slowdown.
Three hours after the Reuters report, Bukele was back on Twitter to complain about the US government and respond to a bill seeking to minimize US exposure to El Salvador’s financial system following Bitcoin’s approval as legal tender. The Accountability for Cryptocurrency in El Salvador Act was withdrawn from committee on Wednesday and is expected to be approved by the full US Senate.
“Never in my wildest dreams would I have thought that the US government would be afraid of what we are doing here,” Bukele said. tweeted in response to the news, adding, “The US government does NOT stand for freedom and that is a proven fact.”
Related: 14% of Salvadoran companies have transacted in BTC: Chamber of Commerce
The Bitcoin-backed bond is being issued by El Salvador as a way to accumulate larger BTC reserves and to fund the construction of “Bitcoin City,” a development entirely devoted to Bitcoin and its blockchain technology. It will reportedly use geothermal energy from nearby volcanoes to power Bitcoin mining and the city’s infrastructure. Half of the $1 billion proceeds will go towards construction costs and the remaining $500 million will be invested directly in Bitcoin.