The World Bank has rejected El Salvador’s request for technical assistance in implementing Bitcoin as a legal tender. However, the Central American country could get help from other financial bodies such as the International Monetary Fund (IMF).
World Bank rejects El Salvador’s Bitcoin request
El Salvador has officially adopted Bitcoin as a legal tender. However, it needs help with the technical aspects necessary to ensure. Bitcoin becomes a legal tender in the country. El Salvador has approached the World Bank regarding the technical assistance, and the financial body has rejected the proposal.
A World Bank spokesperson told Reuters via email that the bank won’t be able to help El Salvador at this moment. “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,” the spokesperson said.
The comment came after Salvadoran Finance Minister Alejandro Zelaya revealed that they had contacted the World Bank seeking technical assistance on how to implement Bitcoin as a legal tender alongside the US Dollar.
IMF and CABEI could come to El Salvador’s rescue
With the World Bank no longer an option, El Salvador is already looking at other options to obtain the needed technical assistance. The minister said they are negotiating with the IMF, and the talks have been successful so far. According to the minister, the IMF is not against the Bitcoin implementation.
This comes as a surprise because the IMF pointed out that there could be macroeconomic, financial and legal issues with El Salvador’s adoption of Bitcoin. The country uses the US Dollar as its legal tender, and it might not bode well with the United States if Bitcoin is added to the mix. The concern in several quarters is that Bitcoin poses a threat to the US Dollar’s position as the global reserve currency.
In addition to the IMF, El Salvador could also go with the Central American Bank for Economic Integration (CABEI). CABEI said it would provide technical assistance to El Salvador regarding its implementation of BTC as a legal tender.