President Bukele Responds to Bitcoin Bond ‘FUD’

President Bukele Responds to Bitcoin Bond ‘FUD’

Bitcoin Crypto News News
March 28, 2022 by Elias Powell
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On Wednesday evening, the President of El Salvador, NayibBukele, took to Twitter to bash a report on Reuters, which said that Changpeng Zhao was flying to El Salvador for saving its Bitcoin Bond. Talking to his 3.6 million followers on Twitter, Bukele said that they should not spread the FUD that Reuters is creating. He
Crypto-currency

On Wednesday evening, the President of El Salvador, NayibBukele, took to Twitter to bash a report on Reuters, which said that Changpeng Zhao was flying to El Salvador for saving its Bitcoin Bond. Talking to his 3.6 million followers on Twitter, Bukele said that they should not spread the FUD that Reuters is creating. He rebuked the claim that the chief executive of Binancewas coming to El Salvador to assist with the bitcoin bond offering worth $1 billion. This had been scheduled initially for mid-March, but they had had to postpone it till September. The president had responded to a tweet from Bitcoin Magazine on the subject, which has been deleted since then.

According to Bukele, the ‘volcano bond’ offering had only been delayed because of the legislative delays that had occurred in Congress. He also added that his meeting with Binance’s CEO had absolutely no connection to the bond offering and that they were going to meet for discussing ‘other issues’. Bitfinex is the company that plans on underwriting the Bitcoin Bond and its chief technology officer, Paolo Ardoino, also came to Bukele’s aid. He said that the delays in the bond were mostly because of laws related to bond issuance and they still needed to be passed by the Congress.

Blockstream is the company that has partnered with El Salvador in the bond launch and its former chief strategy officer, Samson Mow also joined in to support the president. He said that nothing had changed where the bond is concerned. Alejandro Zelaya, the Finance Minister of El Salvador, had announced last week that the $1 billion bond that had to be launched in mid-March would not be introduced until September. As for the reason behind the delay, he said that it was because of the geopolitical instability.

Three hours after Bukele tweeted about Reuters, he was back again on Twitter to complain about the United States government. He was responding to a bill that has been proposed in the Senate for minimizing the exposure of Americans to the financial system of El Salvador after the country adopted Bitcoin as legal tender. The committee passed out the Accountability for Cryptocurrency in El Salvador Act on Wednesday and it is now scheduled for voting by the complete US Senate. Bukele said that he hadn’t thought in his wildest dreams that the US government would actually be afraid and this was proof that they don’t stand for freedom.

El Salvador is issuing the Bitcoin-backed bond in order to accumulate more Bitcoin (BTC) reserves and the funds would be used for constructing the ‘Bitcoin City’ they have planned. As the name indicates, the city is dedicated fully to Bitcoin and the blockchain technology associated with it. They plan on using geothermal power from the volcanoes nearby for supporting bitcoin mining and for the infrastructure of the city. Of the total $1 billion proceeds, half would be used for investing directly in Bitcoin, while the remaining would be used for funding the construction costs.

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