World Bank Causes Setback for El Salvador's Bitcoin Dreams

World Bank Causes Setback for El Salvador's Bitcoin Dreams

  • The plan of El Salvador to make bitcoin one of its official currency might have hit a roadblock, as the World Bank said it can't associate with it
  • El Salvador spoke to World Bank about the country's plan, but due to the cryptocurrency's impact on environment and many more, it will not be getting the backing
  • As the Bretton Woods turned down the Central American country, the International Monetary Fund didn't ignore their request, but it questioned the plan

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El Salvador won't be getting any support from the World Bank relating to the country's bitcoin adoption. The Central American nation had announced that the crypto will become an official currency.

The international creditor had been approached by El Salvador to assist on the cryptocurrency integration, but the World Bank distance itself from the digital currency.

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World Bank Causes Setback for El Salvador's Bitcoin Dreams
A bitcoin payment center in El Salvador. Photo: Alex Pena/Anadolu Agency
Source: Getty Images

The Bretton Woods said the negative environmental impact of bitcoin makes it impossible for the global bank to be associated with the electronic money.

"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.”

Although the World Bank said it is committed to helping El Salvador in other currency related matters like transparency and regulatory process in the country.

However, Alejandro Zelaya, Finance Minister of Salvadoran said the International Monetary Fund (IMF) is in support of its bitcoin implementation, but IMF had stated that the integration has issues bothering on macroeconomic, financial and legal.

The country plans to use bitcoin as an official currency alongside the U.S. dollar, which became El Salvador's tender in 2001.

Meanwhile, Legit.ng had previously reported that the World Bank says Nigerians are not paying enough for the power supplied by generating and distribution company.

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It was gathered that the government is taking on majority of the shortfalls, and this is increasing the debt problem of the country.

World Bank said government spending more money on power sector than the health industry, and the wealthiest Nigerians are the one enjoying this benefit.

Source: Legit

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