Paolo Ardoino: “The launch of BTC-backed bonds will be delayed for several months”

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​​​Paolo Ardoino, technical director of the Bitfinex cryptocurrency exchange, said that El Salvador will postpone the launch of bonds backed by bitcoins due to the unpreparedness of the state's legal framework.

Last November, the President of El SalvadorNayib Bukele has announced his intention to launch Volcano Bonds backed by Bitcoin. They will be used to finance the infrastructure of Bitcoin City, which will become a zone for the development of technological innovation and a tax haven. $1 billion from the sale of bonds will be invested in this project. Bitfinex management supported this initiative and expressed its readiness to place these bonds on its platform.

However, in a recent interview, technicalBitfinex director Paolo Ardoino said that the government of El Salvador may again delay the launch of bonds. He suggested that if the law related to the launch of these digital securities is passed in September, then it will take another two to three months to implement the regulatory framework.

Launch of BTC-backed bondsThis is not the first time that it has been postponed. In June, El Salvador's Finance Minister Alejandro Zelaya said that this event would have to be postponed due to the high volatility of the cryptocurrency market and the difficult geopolitical situation in connection with the military operation in Ukraine. In addition, many investors interested in cryptocurrencies began to invest in the weapons industry, Zelaya added.

The International Monetary Fund (IMF) does not approveactions of the government of El Salvador and sharply criticizes it for buying Bitcoin. At the beginning of the year, the IMF demanded that El Salvador strip Bitcoin of its legal tender status and narrow the scope of its Bitcoin law.