The World Bank reject’s El Salvador’s request for Bitcoin help

The World Bank reject’s El Salvador’s request for Bitcoin help

The World Bank has reportedly declined El Salvadors request for assistance with the adoption of bitcoin as a legal currency, saying that it could not support El Salvador's Bitcoin deployment owing to transparency concerns and the environmental impact of the Bitcoin mining process.

Earlier in June, the Central American country announced its intentions to become the world’s first country to legally embrace the crypto currency, wherein it intends to adopt Bitcoin as a legal currency in addition to its existing legal tender, the US dollar.

Its Congress voted in favor of a proposal made by President Nayib Bukele's to adopt Bitcoin. President Bukele stated that the administration made history and that the decision will make it much easier for emigrant Salvadoreans to send money home.

Under the new legislation Bitcoin will become legal currency alongside the US dollar within 90 days of Congress' authorization.

As per the new rule, all businesses must accept payments made in Bitcoin for services and products, unless it lacks the necessary equipment to execute the transaction.

A spokesperson from The Word Bank stated that the organization is dedicated to assisting El Salvador in a variety of ways, including ensuring currency transparency and streamlining regulatory processes.

The spokesperson also added that the World Bank cannot support El Salvador's government with Bitcoin, owing to environmental and transparency concerns.

This statement from World Bank comes after, Alejandro Zelaya, Finance Minister of El Salvador, announced on Wednesday that the government requested technical support from the World Bank in order to establish the cryptocurrency as an official payment option.

According to the reports, the IMF also expressed worries about the usage of cryptocurrency. Gerry Rice, an IMF spokesperson, stated that the adoption of Bitcoin as a legal currency brings a variety of macroeconomic, legal, and financial concerns that require a thorough examination.

Source credits: https://www.bbc.com/news/business-57507386