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Bitcoin adoption: World Bank denies El Salvador support

Bitcoin law

TL;DR Breakdown

  • World bank against El Salvador Bitcoin status
  • Crypto community member wants World Bank rendered obsolete

The world bank has said ‘NO’ to providing support for El Salvador on its recent Bitcoin adoption sighting environmental concern, Reuters report.

The world bank also mentioned transparency, for not supporting El Salvador Bitcoin adoption as a legal tender.

“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, ” a World Bank spokesperson said.

Like other banks, world bank not in support of Bitcoin adoption

The request by El Salvador to the world bank in providing support for technical assistance was made by Salvadoran Finance Minister Alejandro Zelaya. This followed legalization of Bitcoin as legal tender in the country after a parliamentary approval.

The finance minister also said that negotiations with the International Monetary Fund had been successful. However, the IMF was also concerned over Bitcoin, citing “macroeconomic, financial and legal issues.”

Siobhan Morden, head of Latin America fixed-income strategy at Amherst Pierpont Securities in New York also played down support possibilities from the IMF.

Bitcoiners, however, were not pleased with the refusal but at the same time are not surprised. Anthony Pompliano in his reaction said so the world bank does not know how to yet make money from Bitcoin.

Samson Mow the CSO of blockchain development firm Blockstream, and creator of blockchain game Infinite Fleet, was irritated by the news — and called for The World Bank to be made obsolete.

While President Nayib Bukele’s Bitcoin law has sparked a lot of excitement from Bitcoin proponents across the globe, it has also received a lot of criticism. Yesterday, economist Steve Hanke said that El Salvador using Bitcoin as a legal tender may “completely collapse the economy.”

But El Salvador is not backing off from its Bitcoin adoption as it is moving quickly with the process. The government entered into a discussion with local companies about the possibility of paying salaries in Bitcoin this week. In a tweet earlier today, President Bukele hinted that a lot more BTC ATMs would be required in El Salvador going forwards.

Provision for mining activities via geothermal energy is also ongoing among other plans for the country to settle with Bitcoin as a legal tender.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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