The World Bank has not accepted El Salvador’s request for assisting it in its transition to utilizing Bitcoin (BTC) as a legal tender. It refers to the problems regarding the environmental impact of Bitcoin and its transparency as the major causes for not supporting El Salvador in its decision to adopt Bitcoin as a legally accepted currency.
In a statement, a spokesperson from World Bank told that the El Salvadoran government approached them for support regarding BTC (Bitcoin), but the matter is beyond the assistance of World Bank as the shortcomings in its transparency, and the environmental impact drawn by it are the things creating a hindrance in it. Nonetheless, it was not mentioned by the World Bank to support El Salvador even if the obstructions of regulatory process and transparency are resolved.
The Finance Minister of El Salvador, Alejandro Zelaya, disclosed on Wednesday that the technical assistance on behalf of Banco Mundial (the World Bank) had been arranged by the Central American country. The Pro Bitcoin users were not happy about the refusal of the World Bank, neither were they astonished by this decision. Anthony Pompliano, a BTC (Bitcoin) proponent, tweeted in reply to the news by stating that the World Bank is unable to find out a way for making money out of Bitcoin.
The creator of Infinite Fleet (a blockchain-based game) and the CSO of Blockstream (a blockchain development company), Samson Mow, got irritated by the news and suggested for the World Bank to be called obsolete.
Although the Bitcoin law of the El Salvadoran president, Nayib Bukele, has heightened the excitement in Bitcoin consumers all over the world, yet it has also been a target of a lot of criticism. The economist Steve Hanke stated a day before that the use of Bitcoin as a legal tender by El Salvador may collapse the country’s economy completely.
Bitcoin’s embrace by El Salvador has not even attracted the IMF (International Monetary Fund). Gerry Rice, an IMF spokesperson, noted that there are several concerns that the adoption of Bitcoin raises, such as macroeconomic, legal, and financial issues that depend upon careful analysis.
Ronaldo Castro, the El Salvadoran Minister of Labor and Social Welfare, refuted any claims on behalf of the Ministry regarding the allowance of using Bitcoin for the salary payments to employees.