Bitcoin Bond Postponed Again
El Salvador’s Finance Minister, Alejandro Zelaya, recently announced that the much-anticipated $1 billion Bitcoin bond will be delayed yet again. This decision comes as the country grapples with the aftershocks of the ongoing Russia-Ukraine war, affecting Bitcoin’s price landscape. In a candid interview on the local news program, Frente a Frente, Zelaya reiterated, “The [Bitcoin] price continues to be disrupted by the war in Ukraine.” So, in case you were planning on buying that beachfront property in Bitcoin City – hold your horses!
Bitcoin City: Building Dreams Near Volcanoes
The ambitious project, first revealed by President Nayib Bukele back in November 2021, aimed to construct a Bitcoin City utilizing geothermal energy from a nearby volcano. You might say they’re trying to literally mine Bitcoin from the ground up! Of the $1 billion bond funds, about half was earmarked for the city’s construction, while the remainder was intended to be invested in Bitcoin itself. Too bad for now, those dreams have been put on the back burner! The original launch was slated for mid-March 2022, but after several pushbacks, it remains uncertain when (or if) this bond will ever see the light of day.
The Ripple Effect: Moody’s Downgrades El Salvador
Alongside the Bitcoin bond woes, El Salvador faces a serious credibility crisis. The rating agency Moody’s has downgraded the country’s credit rating due to fears it may default on an $800 million bond set to mature in January 2023. Yikes! When your credit rating starts to resemble a grading system in school, it’s time to pull up those financial socks! Moody’s pointed to a “lack of a credible financing plan” as a red flag, seeming to agree that planning is not El Salvador’s forte at the moment.
Human Rights Concerns: A Crisis Unfolds?
Meanwhile, while the government is busy trying to navigate the choppy waters of cryptocurrency and international finance, human rights advocacy nonprofit Amnesty International has blasted them for what they describe as “massive human rights violations.” After declaring a state of emergency due to escalating violence (thanks, gangs!), over 35,000 people have reportedly been detained in less than three months, leading to overcrowded prison conditions reminiscent of a rock concert mosh pit – but with much less fun and way more despair.
The Final Verdict: Popular but Controversial
Despite the alarming allegations of human rights abuses, President Bukele maintains an astonishing approval rating close to 87%. It seems the people are willing to overlook the storm clouds of discontent brewing beneath Bukele’s sun-soaked leadership. Call it a case of ‘better the devil you know’? Or perhaps a willingness to pin their hopes on a government that promises economic innovation, even if it’s volatile and comes with questionable side effects?
