El Salvador President Nayib Bukele has condemned a Reuters report that claimed Binance founder Changpeng ‘CZ’ Zhao wants to assist the country’s Bitcoin Bond.
“Please don’t spread Reuter’s FUD,” he tweeted. The Bitcoin bond was billed to take off mid-March but has been postponed to September.
Legislative Issues In Congress Delays Bitcoin Bond
Bukele confirmed that the delay in the much-publicized Bitcoin Bond was due to legislative delays in Congress, contrary to some reports.
He added that his meeting with CZ is on entirely a different matter and it doesn’t have anything to do with the bond offering. Cryptocurrency exchange Bitfinex has been given the role of underwriting the bonds.
Chief Technology Officer of Bitfinex, Paolo Ardoino, was also in the defense of Bukele. He stated that the delays were mainly because of laws surrounding the bond issuance, which is still with congress. He added that the speculation that the delay is related to the recent meeting the President had with CZ is false. Blockstream, which is also a partner in the bond launch, was also in defense of Bukele.
50% Of 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 the Bitcoin bond issuance.
But earlier this week, Alejandro Zelaya, El Salvador’s Finance Minister, stated that the bond will be delayed until September this year. He cited geographical instability as the main reason for the delay.
After his tweet about Reuter’s report, Bukele came back to Twitter, this time angered by the US government’s proposed bill to reduce American exposure to El Salvador’s financial system. The bill is awaiting a vote by the entire Senate, after passing preliminary approval. Bukele was agitated that the U.S. government wants to dabble in the affairs of El Salvador.
The Bitcoin-backed bond is issued to gain a larger BTC reserve and fund the construction of “Bitcoin City.” Half of the $1 billion proceeds will be invested directly into Bitcoin while the other half will be used for the construction of the city.
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