The World Bank has turned down the request of El Salvador in helping the country to transition and adopt Bitcoin (BTC) as a legal tender. The international financial institution has cited numerous issues with the environmental and transparency-related impact of Bitcoin is not supporting El Salvador’s endeavor in adopting Bitcoin as an officially accepted currency.
A World Bank spokesperson has said:
“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.”
However, the institution assured the central American country in helping in other ways such as “currency transparency and regulatory processes”. The response came on Wednesday itself after Finance Minister of El Salvador Alejandro Zelaya said that they had asked for technical assistance from Banco Mundial (the World Bank). He tweeted:
“I want to announce that we have requested technical assistance from @BancoMundial, so that like @BCIE_Org, they can accompany El Salvador in the implementation and regularization of #Bitcoin as legal tender.”
Bitcoiners were not particularly pleased by the reply of the World Bank. However, they weren’t surprised too.
- A popular Bitcoin supporter and proponent Anthony Pompliano has tweeted in response to the World Bank’s response that “World Bank hasn’t figured out how to make money off Bitcoin.”
- Samson Mow (the famous creator of the blockchain game Infinite Fleet as well as the CSO of blockchain development firm Blockstream) was irritated by the World Bank’s refusal to help El Salvador. He went on to call for making the World Bank obsolete.
Just like the leading traditional financial institutions such as the World Bank, the International Monetary Fund (IMF) is also not amused by El Salvador’s decision of adopting Bitcoin. IMF spokesman Gerry Rice has particularly mentioned that El Salvador’s decision of adopting Bitcoin (BTC) as a legal tender is likely to present many financial, legal, and macroeconomic concerns. Rice believes that El Salvador’s decision needs a “very careful analysis”.
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