Bitcoin bond still on hold, El Salvador accused of human rights violations

The El Salvador government has denied accusations of human rights violations against locals. The world’s first cryptocurrency, Bitcoin, was the source which ignited these claims in 2016. Yet despite this denial from the country and their salvadorian citizens living abroad, it is expected that international pressure will continue to mount as time goes on.

The “el salvador bitcoin bond news” is a story about the Bitcoin bond that was going to be issued by El Salvador. The bonds were set to be issued in order to raise money for the country’s infrastructure. However, the government has now been accused of human rights violations and it seems like the bonds are on hold indefinitely.

Bitcoin bond still on hold, El Salvador accused of human rights violations

 

El Salvador’s finance minister, Alejandro Zelaya, has announced that the nation would postpone the introduction of its planned billion-dollar Bitcoin (BTC) bond due to price volatility and unpredictable market circumstances caused by the continuing Russian-Ukrainian conflict.

The announcement comes as Amnesty International has accused the Salvadoran government of “flagrant abuses of human rights and criminalizing those in poverty.”

Zelaya was asked whether the situation with the $1 billion Bitcoin bond issue from a “few months ago” had altered in a June 1 interview on the local “Frente a Frente” (Face-to-Face) news show.

“No, not yet,” he answered, according to a rough translation. “The [Bitcoin] price continues to be disturbed by the situation in Ukraine.” “The changes are consistent in the short term,” he noted, “but it always tends to gain in value in the long run.”

“There is a future and an economic innovation [in Bitcoin] on which we must stake our claim.”

El Salvador’s president, Nayib Bukele, first unveiled the bond proposal in November of 2021. Half of the $1 billion projected would be used to build a “Bitcoin City” near a volcano, with the goal of using the volcano’s geothermal energy to power Bitcoin miners. The remaining half of the assets will be invested in Bitcoin.

The $1 billion bond was supposed to go on sale in mid-March 2022, but in a March interview, Zelaya said the launch would be postponed due to market volatility, suggesting a June start date and a timetable of till September 2022.

Fears that El Salvador would default on a $800 million bond due in January 2023 prompted Moody’s to reduce the country’s credit rating on May 4, citing a “lack of a viable financing strategy.”

El Salvador’s government has been purchasing Bitcoin since September 2021, with Bukele stating on May 9 that the nation had acquired another 500 BTC. The Government’s BTC investments are reported to have lost more than $35.6 million so far.

“Human rights catastrophe,” according to Amnesty International.

Meanwhile, Amnesty International, a human rights organization, accused El Salvador’s government of “gross human rights breaches” such as arbitrary arrests, ill-treatment, and torture of detainees.

President Bukele proclaimed a state of emergency (SOE) on March 27 in response to an increase in homicides, which the administration blamed on gangs and organized crime. Since then, the SOE has been extended twice more.

The SOE, according to the human rights organization, modified legislation and legal processes that jeopardize the right to a fair trial, the assumption of innocence, effective judicial redress, and access to an impartial judge.

Related: What Does the Current Slump Mean for Bitcoin Adoption in El Salvador?

More than 35,000 individuals have been arrested in less than three months as a consequence of the crackdown, resulting in incarceration of 1.7 percent of the country’s population over the age of 18, resulting in overcrowding of over 250 percent of the jail capacity.

#Seguimos https://t.co/Dzcs18bjpA 0 homicides

June 2, 2022 — Nayib Bukele (@nayibbukele)

Despite the atrocities, many El Salvadorians support Bukele’s tough tactics, as seen by surveys showing his popularity. According to the most recent survey provided by local media on June 1st, the present president has a nearly 87 percent approval rating.

The “what is a bitcoin bond” is a type of bond that has been proposed to investors in the cryptocurrency world. The idea behind this is to make it easier for people who are interested in investing, but not so familiar with cryptocurrencies.

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