The long wait for the 10-year BTC Bonds could end this week, as El Salvador will make them available. The latest update on the subject shows that the bonds will be available for purchase before the week ends.
President Nayib Bukele labeled the BTC bonds a “gateway” to alleviate the nation from its overwhelming crisis. Once the bonds become available, investors from all over the globe can acquire them. Bukele has shared his intentions to raise a minimum of $1B from selling the bonds to reduce the country’s mountainous debt.
Still, El Salvador’s expectations might be cut short, given that only a few institutional investors in other parts of the globe have indicated interest in purchasing the much anticipated BTC bonds. Many of these investors said they will be monitoring the situation from the sidelines. Bukele hopes that retail investors come to their rescue.
The Expectations of the Bond
The long-term BTC bond is one of the primary initiatives promised by Bukele when the country adopted the flagship crypto as an official currency in September. As already planned, the initiative aims to ease the nation’s economic burden by adding more BTC to its reserves and finance the dream “Bitcoin City.”
Economic analysts opine that an increased reserve will restructure the nation’s profile, given the heavy economic sanctions. Despite adopting bitcoin as an official currency last September, El Salvador still finds it challenging to drive crypto use.
Once, the government revealed bitcoin would create a seamless method for the significantly greater proportion of migrants to send money home. However, central bank data shows that a meager 2% of remittances in BTC were recorded in January. The number could decline in February.
Another bank said that about 0.01% of debt settlements occurred in BTC. Summarily, the number of BTC transactions that have occurred since adoption is insignificant, which has raised concerns about the true purpose of adopting the crypto.
Why El Salvadorians Show Little Interest in BTC
A survey conducted by the Central American University revealed that 70% of the citizens show little interest in BTC because they think it profits foreigners more. Others are afraid of the asset’s volatility, calling it a risky bet.
However, not everyone is worried about the volatility. Josue Pais, who owns a taxi business, is happy with Bukele’s crypto plans. He has started to accept BTC payments from his customers and even shared his intentions to purchase some bonds when available. He labeled BTC “a captivating bet.”
Many questions are floating around about the future of BTC and if there would be increased participation. Experts suggest Bukele should address El Salvadorians on his economic roadmap and show how BTC would alleviate the debt-ridden country.