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World Bank Says It Can’t Help El Salvador With Regard to Bitcoin

According to a report by Reuters, the World Bank says it cannot help El Salvador with the implementation of Bitcoin as legal tender.

On June 9, the proposed bill to make Bitcoin legal tender in the small Central American nation got passed by the Legislative Assembly (with 62 out 84 voting in favor of it).

La #LeyBitcoin acaba de ser aprobada por mayoría calificada en la @AsambleaSV.

¡62 de 84 votos!

¡Historia! #BTC??

— Nayib Bukele ?? (@nayibbukele) June 9, 2021

According to another Reuters report, on June 10,International Monetary Fund (IMF) said on that day that it had concerns about what El Salvador plans to do with Bitcoin.

Gerry Rice, an IMF spokesman, said during a scheduled press briefing:

“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis… We are following developments closely, and we’ll continue our consultations with the authorities.“

Yesterday, a World Bank spokesperson told Reuters via email:

“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.“

Alejandro Zelaya, who serves as the Minister of Finance in the cabinet of President Nayib Bukele, said yesterday that El Salvador is not “replacing the US dollar as legal tender.”

#LeyBitcoin | “No estamos sustituyendo al dólar estadounidense como moneda de curso legal en El Salvador”: ministro de @HaciendaSV, @AlejandroZelay9. pic.twitter.com/buUv43mgFd

— Secretaría de Prensa de la Presidencia (@SecPrensaSV) June 16, 2021

DISCLAIMER

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

IMAGE CREDIT

Photo by “petre_barlea” via Pixabay


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