The World Bank will not help El Salvador in its transition to Bitcoin.
This is what Reuters reports .
The reasons would have been explained in an exchange of emails between the newspaper and the financial institution. The World Bank would have been concerned about the implications of the transition to Bitcoin.
“We are committed to helping El Salvador in numerous ways, including currency transparency and regulatory processes. While the government has approached us for bitcoin assistance, this is not something the World Bank can support given the environmental shortcomings. and transparency “.
Since the small country of Central America announced in recent days that Bitcoin will become a legal tender, the debate on the implications that this entails has opened. The world financial institutions, starting with the International Monetary Fund , are dealing with this aspect of the economic policy of the nation led by Nayib Bukele.
Bitcoin, El Salvador’s request for assistance to the World Bank
Subsequently, the Minister of Economy Alejandro Zelaya announced that assistance had been requested from the World Bank to implement the use of Bitcoin, which in any case will not completely replace the US dollar, the current currency used in El Salvador.
Apparently, however, the negotiations with the World Bank are not having much success.
In the meantime, however, El Salvador continues on its way so much that it will not only accept Bitcoin: President Bukele has also announced his intention to start mining Bitcoin using the energy produced by volcanoes . He also talked about it with a subject matter expert, Peter McCormack.
However, as Bitcoin prepares to become a foreign currency, President Nayib Bukele had to reiterate that he never said he was going to kick the US dollar out of circulation. This also explains why, at least for the time being, wages will continue to be paid in dollars and not in Bitcoin.
What is certain is that the path begun by El Salvador opens up different scenarios and it is not excluded that other countries in economic difficulty, victims of inflation and with the currency now devalued, may join in and make similar choices.