World Bank Refuses to Help El Salvador with Bitcoin App

The World Bank has announced that it refuses to assist El Salvador in implementing Bitcoin as legal tender. El Salvador had hoped to use Bitcoin as a legal tender alongside the US dollar. First country to accept Bitcoin as legal tender Earlier this month, El Salvador announced plans to pass legislation making it the only sovereign country in the world to accept Bitcoin as legal tender. President Nayib Bukele announced that he is working on a partnership with digital wallet company Strike to build the infrastructure necessary for the country's adoption of bitcoin and its technology. A Troubled Decision The World Bank's decision not to help El Salvador could jeopardize the country's plans to drive Bitcoin integration and adoption in its financial markets. The country had set itself a three-month deadline to ensure nationwide adoption of the cryptocurrency. The Environmental Impact of Bitcoin The World Bank said in a statement that the bank is committed to helping the country in several ways, including regulatory processes and currency transparency. However, he stressed that due to the environmental impact and transparency issues of the cryptocurrency, El Salvador cannot assist with its request for assistance in implementing Bitcoin as legal tender. A spokesperson for the World Bank said: “We are committed to helping El Salvador in a variety of ways, including monetary transparency and regulatory processes. Although the government turned to us for help with Bitcoin, the World Bank cannot support it due to its environmental and transparency shortcomings. Meetings with the International Monetary Fund El Salvador's finance minister also met with the International Monetary Fund, stating that the talks with the IMF were positive and that "he is not against the implementation of Bitcoin". However, the IMF also issued a statement saying that the organization is in question.

Join the Discussion

  • BrokerEUR/USD
    City Index 0.5pips (fixed) margin: 3.33%
    OANDA 1.3pips (variable) margin: 3.33%
  • Back to top