Digital Assets: World Bank Refuses To Assist El Salvador In Bitcoin Implementation

June 18, 2021 | Digital Assets, News
https://dailyalts.com/wp-content/uploads/2021/06/zaragoza-143480_640.jpg

El Salvador decreed bitcoin as legal tender on June 9.

Last week, El Salvador created history by becoming the first country ever to adopt a cryptocurrency as legal tender. On June 9, the country’s legislators approved a move to give bitcoin the status of being legal currency for use in the nation. El Salvador does not have a currency of its own and has so far used the U.S. dollar as its means of exchange. Bitcoin will not replace the US dollar, instead will function alongside it. However, the World Bank has denied the country’s request for help in the implementation of the move. (BBC)

On Wednesday, El Salvador’s Finance Minister Alejandro Zelaya admitted the country had requested the World Bank for technical assistance in implementing bitcoin as legal tender.

He also confirmed that the country’s discussions with the IMF for a $1 billion loan were progressing successfully and that the IMF was “not against” bitcoin.

World Bank response

“We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes,” a World Bank spokesperson told the Reuters news agency via email. “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,” they added.

Despite Zelaya’s statement, the IMF said last week that “adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis.”

“What we have said in the past, in general, is that crypto assets can pose significant risks, and effective regulatory measures are very important when dealing with them,” the IMF spokesman added.

Meanwhile, El Salvador president Nayib Bukele announced last week that he was pushing for a design of a full bitcoin mining hub based on geothermal heat from the country’s volcanoes.

Related Story:    IMF Has Reservations On El Salvador’s Bitcoin Move                                               

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/09/bitcoin-6489755_640.jpg
Digital Assets: Bitcoin Miner Genesis Digital Lands $431M To Expand Operations
September 22, 2021     Digital Assets, News, Venture Capital

Genesis Digital Assets, which runs 2.4% of the bitcoin mining network, has announced a $431 million raise led by Paradigm. Claimed to be the largest ever achieved by a bitcoin…

https://dailyalts.com/wp-content/uploads/2021/09/244002325_a409dcf889_c.jpg
Artificial Intelligence: AI To Help Survey For Endangered Bats Under Bridges
September 22, 2021     Artificial Intelligence, News

Hundreds of thousands of bats from about 40 species routinely nest under US bridges, and many of them are endangered or threatened. Transportation departments must mandatorily check for them before…

https://dailyalts.com/wp-content/uploads/2021/09/Organism-1.0-_-Media.png
Artificial Intelligence: AI Cameras In Amazon Delivery Vehicles Unfairly Penalize Drivers
September 21, 2021     Artificial Intelligence, News

Amazon (NASDAQ: AMZN) installed AI-powered cameras in its delivery fleet in February as an investment in safety technology across its operations. The company said at the time the system would…

https://dailyalts.com/wp-content/uploads/2021/09/cakes-652063_640.jpg
FinTech: Assets, A New Product From Wise, Lets You Spend From Your Stocks Portfolio
September 21, 2021     FinTech, News

Wise (LON: WISE), the UK payments fintech previously known as TransferWise, has taken its first steps into investing solutions. Its Assets product allows users to invest in stocks but also…