World Bank won’t be helping El Salvador with the Implementation of Bitcoin as a Legal Tender

Last week, El Salvador announced it will officially be adopting Bitcoin as a legal tender in the country. However, according to the latest reports, the World Bank has refused to assist El Salvador’s request with the implementation of Bitcoin as a legal tender.

The World Bank said it rejected the country’s request due to transparency and the environmental impact of Bitcoin mining.

The rejection means El Salvador will not be able to meet its deadline to ensure that Bitcoin is accepted nationwide in the next three months.

A World Bank spokesperson in an email to Reuters news agency said, “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.”

It comes after El Salvador’s Finance Minister Alejandro Zelaya said on Wednesday that the country had asked the World Bank for technical assistance with the implementation of cryptocurrency as an official method of payment.

Mr. Zelaya also said that discussions with the International Monetary Fund (IMF) have been successful, saying the IMF was “not against” the implementation of Bitcoin.

But the IMF last week said it saw “macroeconomic, financial and legal issues” with El Salvador’s adoption of Bitcoin.

Last week, El Salvador became the first country in the world to officially classify Bitcoin as a legal currency.

President Bukele said the government had made history, and that the move would make it easier for Salvadoreans living abroad to send money home.

Under the legislation, Bitcoin will become legal tender, alongside the US dollar within 90 days of the approval by Congress.

The new law means every business must accept Bitcoin as legal tender for goods or services unless it is unable to provide the technology needed to process the transaction.

According to the BBC, El Salvador’s economy relies heavily on remittances, or money sent home from abroad, which make up around 20% of the country’s gross domestic product (GDP)

More than two million Salvadoreans live outside the country, but continue to keep close ties with their place of birth, sending back more than $4bn (£2.9bn) each year.