Commenting on the nation’s ‘volcano bonds’, El Salvador Treasury minister Alejandro Zelay said that the current Ukraine-Russia conflict has influenced the price of Bitcoin (BTC) on international markets which in effect led to the delay of the bonds and the construction of Bitcoin City.

In an appearance on national television, Zelaya noted that investors might have diverted some of their funds to other industries as of late, saying:

“With the arrival of the conflict between Russia and Ukraine, many investments in crypto became investments in companies related to the arms industry. There were transfers of investments to the pharmaceutical industry and in other cases, these went to companies that manufacture agricultural supplies.”

Zelaya added that with the uncertainties the conflict brings, the issuance of bonds, which in turn will finance part of geothermal powered Bitcoin City, is postponed once more.

Furthermore, Zelaya responded to criticism on the country’s Bitcoin purchases indicating that the country’s Treasury has purchased them to hold and since no sale or exchange for other assets took place, no losses incurred. He stressed:

“They always come out and say ‘they’ve lost,’ when we haven’t really sold the coin. If you don’t sell the coins, you keep them, you wait [until] the price goes up again.”

At the time of writing, El Salvador holds 2,301 BTC worth almost $70 million at current price. The country has been “buying the dip” on multiple occasions, picking up relatively cheap coins.

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