El Salvador Seeks to Issue $1 Billion in Bitcoin Bonds, but Markets Aren't Bullish on Their Prospects

El Salvador's Finance Minister Alejandro Zelaya said the country is still looking for the right time to issue bitcoin bonds, possibly between March 15 and 20.

Earlier, Salvadoran President Nayib Bukele said he intends to issue the country's first $1 billion in bitcoin bonds in March and use the proceeds to buy the cryptocurrency and build what El Salvador calls a "Bitcoin City.

However, the market is not optimistic about the prospects of El Salvador's bitcoin bond offering.

Some analysts have pointed out that the bitcoin bonds have an interest rate of just 6.5 percent per year of face value - far below the yield on El Salvador's sovereign bonds - and that such low yields are not very attractive to investors. In addition, Acevedo, the former governor of El Salvador's central bank, noted that the country's lack of solid public finances could also deter investors.