President Bukele takes on Bitcoin Bond 'FUD' as CZ heads for El Salvador

Salvadoran President Nayib Bukele took to Twitter on Wednesday evening, denouncing a Reuters report claiming that Binance CEO Changpeng Z...



Salvadoran President Nayib Bukele took to Twitter on Wednesday evening, denouncing a Reuters report claiming that Binance CEO Changpeng Zhao (CZ) was flying to rescue El Salvador’s Bitcoin Bond.

“Please don’t spread Reuters FUD,” Bukele tweeted to his 3.6 million followers, scolding the claim that CZ was stealing to help after the $1 billion bond issue, originally slated for mid-March, was postponed to september. He was responding to a tweet on the subject by Bitcoin Magazine, which has now deleted the post.

Bukele said the delay in the “volcanic bond” offering was mainly due to legislative delays in Congress, that his meeting with CZ had nothing to do with the bond offering, and that the pair had l intention to discuss “other matters”.

Paolo Ardoino, CTO of Bitfinex – the company underwriting the bond – came to the aid of Bukele indicating that the delays were largely due to laws regarding the issuance of bonds that had yet to be passed by Congress. Samson Mow, former Chief Strategy Officer Blockstream – El Salvador’s bond launch partner – also participated, Tweeter that “nothing has changed”.

Earlier in the week, El Salvador’s Finance Minister Alejandro Zelaya noted that the $1 billion bond, originally scheduled for mid-March, would be delayed until September, citing geopolitical instability as the main reason for the delay.

Three hours after hitting Reuters reports, Bukele was back on Twitter complaining about the US government, responding to a bill to minimize US exposure to the Salvadoran financial system following the adoption of bitcoin as legal tender. the El Salvador Cryptocurrency Liability Law was rejected by the committee on Wednesday and is expected to be voted on by the entire US Senate.

“Never in my wildest dreams did I think the US government would be afraid of what we’re doing here,” Bukele said. tweeted in response to the news, adding, “The US government does NOT stand for freedom and that is a proven fact.”

Related: 14% of Salvadoran businesses transacted in BTC: Chamber of Commerce

The Bitcoin-backed bond is issued by El Salvador in order to accumulate larger BTC reserves and finance the construction of “Bitcoin City”, a development entirely dedicated to Bitcoin and related blockchain technology. It would use geothermal energy from nearby volcanoes to power Bitcoin mining as well as the city’s infrastructure. Half of the $1 billion proceeds will go towards construction costs and the remaining $500 million will be invested directly in Bitcoin.