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World Bank Not in Favor of El Salvador Bitcoin Plan

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World Bank Not in Favor of El Salvador Bitcoin Plan

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The World Bank stated that due to environmental issues and a lack of transparency, it cannot help to implement Bitcoin in El Salvador.

On Wednesday, a World Bank spokesman said they were committed to helping El Salvador in a variety of ways, including currency transparency and the regulatory processes of its Bitcoin rollout plan.

However, according to Reuters, the international financial institution is not interested in Bitcoin, adding:

“While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”

Banks Not Supportive of Bitcoin

El Salvador’s finance minister Alejandro Zelaya said the Central American country had asked the World Bank for technical assistance. On June 9, a law was passed to legalize Bitcoin when the country tried to use it as a currency alongside the US dollar.

The minister also stated that the ongoing negotiations with the International Monetary Fund were successful. However, the International Monetary Fund also expressed concern about Bitcoin, citing “macroeconomic, financial and legal issues”.

Siobhan Morden, Head of Fixed Income Strategy for Latin America at Amherst Pierpont Securities in New York, told Reuters:

“There is no fast track for a solution on an IMF program and even uncertainty on whether the bitcoin proposal is compatible with diplomatic U.S. (or) multilateral relations.”

President Nayib Bukele was undisturbed and plans to move forward with his plan to introduce Bitcoin. On June 10, he announced plans to harness the country’s abundant renewable geothermal energy to build bitcoin mining facilities. The government is continuing to look into the possibility of using Bitcoin to pay wages in local businesses and having more BTC ATMs in El Salvador.

It was reported on Monday that the Central American Bank for Economic Integration (CABEI) agreed to work with the Salvadoran government to make Bitcoin the country’s second legal tender.

However, not all of them support that much. On Wednesday, well-known economist Steve Hanke made fun of the plan, calling it a “very stupid” decision influenced by the “dark forces” against the US dollar.

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