El Salvador Treasury Minister States Ukraine-Russia Conflict Disrupted Bitcoin Prices, Volcano Bonds Still on Hold

El Salvador

Alejandro Zelaya, Treasury minister of El Salvador, explained that the conflict happening currently between Ukraine and Russia has influenced the price of bitcoin on international markets, disrupting it. Due to this disruption, Zelaya also stated that it was not feasible to issue the volcano bonds yet, which are to finance the construction of the Bitcoin City announced last year by President Nayib Bukele.

Treasury Minister of El Salvador Says Conflict Is Affecting Bitcoin Price Action

Military conflict and geopolitical unrest might be affecting the performance of the price of bitcoin in the cryptocurrency market. This is the opinion of Alejandro Zelaya, the minister of the Treasury of El Salvador, who connected these variables to delays the launch of the volcano bonds is experiencing.

In an interview on a local television network, Zelaya explained that he believes investors might have diverted some of their funds to other industries during the Russia-Ukraine conflict. He stated:

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.

Furthermore, Zelaya explained that, due to this disruption in prices caused by the aforementioned conflict, it is not the time to issue El Salvador’s volcano bonds. These bonds, which will be used to finance part of the Bitcoin City, projected to use only geothermal energy to power its operations, were previously set to be launched during the first three months of the current year.


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Zelaya called out experts that are criticizing the bitcoin purchases that the government of El Salvador has executed through its president, Nayib Bukele. Currently, El Salvador holds more than 2,500 BTC in its wallets, purchased at different prices, with Bukele announcing he had “bought the dip” several times.

Zelaya indicated that these bitcoins were not purchased to be sold and that there was no loss associated with the purchase without having exchanged them for other assets. He stated:

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.

What do you think about the statements of Treasury minister Alejandro Zelaya on the price of bitcoin and the launch delay of the volcano bonds? Tell us in the comments section below.

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