El Salvador’s Finance Minister Alejandro Zelaya explained that the current conflict between Ukraine and Russia has affected and disrupted the price of bitcoin on international markets. Because of this turmoil, Zelaya also said that it is not yet possible to issue the volcanic bonds to finance the construction of the Bitcoin City announced by President Nayib Bukele last year.
El Salvador’s Finance Minister Says Conflict Affecting Bitcoin Price Movement
Military conflicts and geopolitical unrest may be affecting the performance of Bitcoin’s price in the cryptocurrency market. This is the opinion of Alejandro Zelaya, Minister of Finance of El Salvador, who connected these variables to the delays being experienced by the launch of volcanic bonds.
In an interview with a local television station, Zelaya explained that he believes investors may have diverted some of their funds to other industries during the Russian-Ukrainian conflict. He said,:
With the advent of the conflict between Russia and Ukraine, many investments in crypto became investments in companies related to the arms industry. There was a move of investments to the pharmaceutical industry, and in other cases these went to companies producing agricultural goods.
In addition, Celaya explainedthat it was not the time to issue volcanic bonds in El Salvador because of this price disruption caused by the aforementioned conflict. The bonds, which will fund a portion of Bitcoin City, which is projected to be powered solely by geothermal energy, were previously scheduled to be launched in the first three months of this year.
HODL Mode Launch
Zelaya called out experts who have criticized the bitcoin purchase, which the El Salvadoran government executed through President Nayib Bukele. Currently, El Salvador holds more than 2,500
BTC. BTCpurchased at different prices in its wallets, and Bukele has announced several times that he “bought the dip.”
Zelaya noted that these bitcoins were not purchased to be sold, nor were they exchanged for other assets, and that there was no loss associated with the purchases. He stated.
They always come out and say ‘they lost’ when we didn’t actually sell the coins. We don’t sell the coins, we keep them and wait (for) the price to go up again.’
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