The introduction of Bitcoin by El Salvador seems to have caused interest rates on its bonds to rise.
BloombergSeptember 8th articleAccording to the report, a reversal phenomenon occurred in the yield curve of El Salvador’s bonds. In other words, short-term bonds have higher interest rates than long-term bonds.
“This is generally considered a bad sign because it means investors consider short-term bonds to be more risky,” he said.
Ben Emmons of Medley Global Advisors emphasized that El Salvador’s bonds fell sharply on the day the Bitcoin law came into force, and market movements “concern that widespread adoption of Bitcoin will have a significant impact on the country. It’s an unwelcome sign that there is. “
But Bitcoin alone doesn’t seem to put bearish pressure on El Salvador bonds.In Bloomberg’s article, with President BukeleConflict with the judiciaryIt also touches on the possibility of the influence of.
The Bitcoin Act came into force on September 7 in El Salvador. There were also technical problems such as the country-issued Chivo wallet suffering from a server capacity error.
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