El Salvador is set to issue its first-ever $1 billion bitcoin-backed bond as early as next week, however the war in Ukraine has created a 'timing issue' according to a Friday statement by finance minister Alejandro Zelaya.
"We believe that between March 15 and 20 is the right timing, we have the tools almost finished. But the international context will tell us ... I didn't expect the war in Ukraine," he told a local TV channel, according to Reuters.
President Nayib Bukele aims to issue his country's first-ever $1 billion bitcoin-backed bond this month and use the proceeds to buy more cryptocurrencies and build "Bitcoin City" - a planned metropolis that would use geothermal energy from a nearby volcano to "mine" the digital coins.
As Reuters notes, the bitcoin-backed bond has faced headwinds amid intensifying volatility in crypto - as Russia's invasion of Ukraine threw a wrench in the gears.
"We're still finishing some details, almost everything is ready, the thing is there is also a timing issue," said Zelaya.