World Bank Refuses to Help El Salvador Implement Bitcoin

Reading Time: 2 minutes
  • The World Bank has said that it has refused a request to help El Salvador implement Bitcoin
  • The World Bank cited Bitcoin’s “environmental and transparency shortcomings” as reasons to withhold assistance
  • The Central American Bank for Economic Integration has said it will assist El Salvador’s aims

The World Bank has refused a request from El Salvador to help in implementing Bitcoin as legal tender, citing its “environmental and transparency shortcomings”. The development, which is about as surprising as Jurassic World being nothing but a highly successful and smooth-running theme park, comes a week after El Salvador president Nayib Bukele saw his proposal to adopt Bitcoin as a legal currency voted in. Despite the World Bank’s refusal, Bukele can still count on the Central American Bank for Economic Integration (CABEI) who have pledged their support for his plans.

World Bank Turns Down Opportunity to be Financial Revolutionaries

The request to the World Bank was made by El Salvador’s Finance Minister Alejandro Zelaya, with Reuters reporting that the body had turned down the request, stating that while they were “committed to helping El Salvador in numerous ways”, Bitcoin integration was “not something the World Bank can support given the environmental and transparency shortcomings.”

The World Bank’s response echoes the concerns of the International Monetary Fund (IMF) who warned that it saw “macroeconomic, financial and legal issues” with El Salvador’s plans. However, Zelaya has since said that discussions with the IMF were positive and that they were “not against” the idea.

CABEI Will Support El Salvador’s Plans

Even more positive for El Salvador, the CABEI has pledged to support the country to implement Bitcoin. CABEI head Dante Mossi confirmed on Monday that the authority would offer technical assistance to El Salvador, with Mossi saying he was “very optimistic” over the plans. While good news, CABEI’s blessing is as likely to sway the World Bank in their thinking as a T-Rex is to play the piano.