The World Bank refused to support El Salvador’s request for assistance in transitioning to using Bitcoin as legal tender.
The World Bank rejected El Salvador’s request for assistance in the country’s transition to using Bitcoin as legal tender.
It cited Bitcoin’s environmental impact and transparency issues as the reasons why it did not support El Salvador’s move to adopt Bitcoin as the official currency of acceptance.
A spokesperson for the World Bank said: “Although the government does ask us for Bitcoin assistance, given the shortcomings in the environment and transparency, this is not something the World Bank can support.”
However, the World Bank does point out that it can help El Salvador in other ways, including “currency transparency and regulatory procedures.”
Earlier Wednesday, El Salvador’s Finance Minister Alejandro Zelaya (Alejandro Zelaya) stated that the Central American country had sought technical assistance from Banco Mundial (World Bank).
The prominent Bitcoiners were not satisfied with the rejection of the World Bank, but they were not particularly surprised.
Bitcoin supporter Anthony Pompliano responded to the news on Twitter that “The World Bank has not figured out how to make money from Bitcoin.”
The CSO of the blockchain development company Blockstream and the creator of the blockchain game Infinite Fleet Samson Mow were annoyed by the news – and called for the World Bank to be obsolete.
Although President Nayib Bukele’s Bitcoin law has aroused great excitement among Bitcoin supporters around the world, it has also received a lot of criticism. Yesterday, economist Steve Hanke stated that El Salvador’s use of Bitcoin as legal tender could “crash the economy completely.”
The International Monetary Fund (IMF) is also not keen on El Salvador’s embrace of Bitcoin. Cointelegraph reported on June 11 that it may hinder negotiations with the IMF on a $1 billion loan to support the country’s economy.
International Monetary Fund spokesperson Grie Rice pointed out that the adoption of Bitcoin has brought many financial, legal and macroeconomic issues that require “very careful analysis”.
But some companies are eager to help. Athena Bitcoin stated that it will act quickly to provide Bitcoin ATMs in El Salvador. On Twitter today, the company asked Booker if “1,000 ATMs” are enough, and the president jokingly replied “1,000? How about 1,500?”
Yesterday, El Salvador’s Minister of Labor and Social Welfare, Rolando Castro, denied that the ministry had begun discussing the option of using Bitcoin to pay employees’ wages and pointed out that “it is too early to talk about wages”.