President Bukele hits out at Bitcoin Bond ‘FUD’ as CZ jets in to El Salvador

Nayib Bukele, President of El Salvador, took to Twitter Wednesday evening to criticize a Reuters report that Binance CEO Changpeng Zhao was in El Salvador to save the Bitcoin Bond.

Bukele sent a message to his 3.6million followers: “Please don’t spread Reuter’s FUD.” He refuted the claim that CZ was coming in to help after the $1billion bond offering, originally scheduled for mid March, was delayed until September. Bukele was responding to a tweet by Bitcoin Magazine on the subject, but the post has been deleted.

I love @BitcoinMagazine. Please don’t spread @Reuters FUD. The #Bitcoin Volcano Bonds are being issued using @bitfinex. We are prioritizing internal pension reform, and this is why there was a short delay in the issuance.
— Nayib Bukele (@nayibbukele) March 23, 2022

Bukele said that the delay in offering the “volcano bonds” was due to delays in Congress. He also stated that his meeting in person with CZ had nothing to do the bond offering. The pair will continue to discuss “other matters”.

Paolo Ardoino (CTO of Bitfinex), the company that underwrote the bond, came to Bukele’s rescue by pointing out that delays were due to laws regarding bond issuance which still needed to passed by Congress. Samson Mow, the former chief strategy officer Blockstream, El Salvador’s partner in bond launch, also tweeted that “nothing had changed.”

Alejandro Zelaya, El Salvador’s Finance Minister, stated earlier in the week that the $1 Billion bond originally scheduled for mid March would now be delayed to September. He cited geopolitical instability and the primary reason.

After slamming Reuters reporting, Bukele returned to Twitter to complain about the US Government. He was responding to a bill that seeks reduce America’s exposure to El Salvador’s financial system after it adopted Bitcoin as legal tender. The Accountability for Bitcoin in El Salvador Act passed the committee and is now up for vote by the entire U.S. Senate.

“Never in all my wildest dreams would i have believed that the U.S. Government might be afraid of our doing here,” Bukele tweeted to respond to the news. He added, “The US Government DOES not stand for freedom and this is a proven fact.”

Similar: 14% of Salvadoran Businesses have transacted in BTC, Chamber of Commerce

El Salvador is issuing the Bitcoin-backed bond to raise more BTC reserves. It also intends to finance “Bitcoin City”, which will be a development exclusively dedicated to Bitcoin and related blockchain technology. The bond will use geothermal power from nearby volcanoes for Bitcoin mining and the construction of the city’s infrastructure. The proceeds of $1 billion will go towards construction costs, while $500 million will be used to invest directly in Bitcoin.