The World Bank has refused to provide technical assistance to El Salvador in introducing Bitcoin as legal tender. The bank named the “environmental and transparency deficiencies” of Bitcoin as the reason.
World Bank will not help El Salvador with the Bitcoin law
The World Bank said Wednesday it could not help El Salvador implement the law that makes bitcoin legal tender. A World Bank spokesman told Reuters, “We are committed to helping El Salvador in a variety of ways, including currency transparency and regulatory processes,” said:
Although the government has asked us for help with Bitcoin, the World Bank cannot support this given the environmental and transparency deficiencies.
El Salvador became the first country in the world to adopt Bitcoin as legal tender after its Congress passed President Nayib Bukele’s Bitcoin law last week.
El Salvador’s finance minister Alejandro Zelaya said Wednesday that the country had asked the World Bank for technical assistance to implement the law that uses bitcoin as a parallel legal tender alongside the US dollar.
Zelaya also said the International Monetary Fund (IMF) is “not opposed” to El Salvador adopting Bitcoin as legal tender after declaring his country would not give up the US dollar. “We have communicated our official position to the IMF. We were insistent that we would not replace the US dollar as legal tender in El Salvador, ”said the finance minister during a press conference. However, an IMF spokesman said there were “macroeconomic, financial and legal problems” with El Salvador’s Bitcoin law.
Meanwhile, the Central American Bank for Economic Integration (CABEI), made up of 15 member countries, said it was providing technical assistance to help El Salvador adopt Bitcoin as legal tender. CABEI Executive President Dante Mossi was very optimistic about El Salvador’s move.
What do you think of the World Bank refusing to help El Salvador? Let us know in the comment section below.
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