The World Bank has rejected a request from El Salvador to help move the country towards accepting Bitcoin as legal tender.
World Bank sees concerns with Bitcoin environmental impact and transparency as reasons why they would not support El Salvador decision to accept Bitcoin as an officially accepted currency.
A World Bank spokesperson said:
We are committed to helping El Salvador in numerous ways, including for currency transparency and regulatory processes. 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.
Earlier this month, El Salvador announced plans to pass legislation that would make it the only sovereign country in the world to accept Bitcoin as legal tender. President Nayyib Bukele announced that the country is working on a partnership with digital wallet Strike to create the necessary infrastructure for the adoption of bitcoin and its technology.
On Wednesday, El Salvador’s finance minister Alejandro Zelaya said the Central American country had asked for technical assistance from Banco Mundial (the World Bank).
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.
But world bank refused El Salvador:
BREAKING: WORLD BANK CANNOT HELP EL SALVADOR MAKE WORLD BANK OBSOLETE. pic.twitter.com/gLReCZXC4r
— Samson Mow (@Excellion) June 17, 2021
Earlier El Salvador’s finance minister also consulted with the International Monetary Fund, saying that discussions with the IMF have been positive and that he “is not opposed to the introduction of Bitcoin.” However, the IMF also released a statement saying the organization sees financial, legal and macroeconomic problems with El Salvador’s plan to accept Bitcoin as legal tender.