World bank revealed its refusal to assist El Salvador implement and integrate Bitcoin as legal tender in its economy.
El Salvador’s Finance Minister (Alejandro Zelaya) on Wednesday stated that Central American countries have requested technical assistance from the World Bank.
The minister said: “I would like to announce that we have requested technical assistance from the World Bank.
So that, like BCIE_Org, they can work together with El Salvador to implement and regulate Bitcoin as legal tender.”
Earlier this month, the country announced its plans to pass legislation and make it the only sovereign country in the world that uses Bitcoin as legal cash.
President Nayib Bukele has stated that the government is working with the digital wallet company Strike to build the necessary infrastructure for the adoption of Bitcoin and its technology.
Also the World Bank stated that it cannot do anything towards the implementation of Bitcoin in El Salvador due to environment and transparency issues. A spokesperson for the World Bank said: “We are committed to helping El Salvador in a variety of ways, including transparency in currency and regulatory procedures.
“Although the government is asking us for help with Bitcoin, this is not something the World Bank can do, as there is insufficient transparency and environmental health inadequacies.
Because of the World Bank’s decision not to support it, El Salvador’s intention to integrate and accept Bitcoin into its financial system may be threatened. The government has set a three-month deadline to guarantee the acceptance of Bitcoin across the country.
The country Congress approved President Bukele’s proposal to adopt Bitcoin and incorporate its financial system. The President announced that the measure is historic and will make it easier for its citizens living abroad to transfer money to family members in El Salvador.
A proposal by the legislation stated that Bitcoin would become legal tender, along with the US Dollar, within a 90-day period of Congressional approval. The new law requires companies to accept Bitcoin as a legal currency to bid for their services.
Unless and until the company cannot provide the technical infrastructure needed to process transactions.
The minister said discussions with the International Monetary Fund has only been Positive, as the IMF is not opposed to the implementation of Bitcoin.”
However, the Bitcoin law in El Salvador is seen as an obstacle. The IMF issued a statement stating that the organization believes that El Salvador’s plan to adopt Bitcoin as legal tender has financial, legal and macroeconomic issues.
According to Per a Reuters report, International Monetary Fund spokesperson Gerry Rice said: “The adoption of Bitcoin as legal tender has caused many macroeconomic, financial and legal issues that require very careful analysis and observations. We are closely monitoring developments and will continue to Consult with the authorities.”