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Tuesday, March 28, 2023

El Salvador Treasury Minister States Ukraine-Russia Conflict Disrupted Bitcoin Prices

El Salvador Treasury Minister States Ukraine-Russia Conflict Disrupted Bitcoin Prices – El Salvador’s Treasury Minister, Alejandro Zelaya, explained that the current conflict between Ukraine and Russia has influenced and disrupted the price of bitcoin on international markets.

As a result of the disruption, Zelaya stated that it was not yet possible to issue the volcanic bonds, which are intended to finance the construction of the Bitcoin City, which President Nayib Bukele announced last year.

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Military conflict and geopolitical upheaval may have an impact on bitcoin’s performance in the cryptocurrency market. This is the opinion of Alejandro Zelaya, El Salvador’s Minister of the Treasury, who linked these variables to the delays in the launch of the volcanic bonds.

During an interview with a local television network, Zelaya said he believes some investors shifted capital to other industries during the Russia-Ukraine conflict. 

Also Read: South Africa Charges Former Monero Lead Developer With 378 Counts of Fraud and Forgery

He stated:

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“With the start of the Russian-Ukraine conflict, many crypto investments were converted into investments in companies involved in the arms industry. Transfers of investments were made to the pharmaceutical industry in some circumstances, and to agricultural supply companies in others.”

Furthermore, Zelaya stated that now is not the time to issue El Salvador’s volcano bonds because of the price disruption caused by the ongoing conflict. These bonds, which would be used to fund a portion of the Bitcoin City that is expected to run entirely on geothermal energy, were initially scheduled to be released in the first three months of this year.

Experts who have criticized the government of El Salvador’s bitcoin acquisitions through its president, Nayib Bukele, have been called out by Zelaya. El Salvador currently has around 2,500 BTC in its wallets, purchased at various prices, with Bukele claiming to have “bought the dip” multiple times.

Zelaya stated that these bitcoins were not obtained with the intention of reselling them, and that there was no loss involved in the acquisition because they were not exchanged for other assets. 

Also Read: Venezuelan Sunacrip Tightens Control on Transactions Made Using Unauthorized Exchanges

El Salvador Treasury Minister States Ukraine-Russia Conflict Disrupted Bitcoin Prices – He explained:

“When we haven’t actually sold the coin, they always come out and declare “they’ve lost.” You keep the coins if you don’t sell them and wait for the price to rise again.”

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