El Salvador’s authorities have approached the World Bank with a request for assistance in integrating bitcoin into the country’s monetary system. However, the organization refused to help.
Bitcoin was recognized as legal tender in El Salvador in early June, but it is still quite difficult to use the first cryptocurrency in the country – it is necessary to integrate with the current financial system and work out many legal issues.
With a request for assistance in such integration, the country’s authorities turned to the World Bank. However, the organization denied assistance, saying that the use of bitcoin raises questions about the transparency of payments.
World Bank officials also have doubts about the environmental friendliness of bitcoin. Earlier, similar concerns were expressed by representatives of the International Monetary Fund (IMF).
“We want to help El Salvador in a variety of endeavors, including developing regulatory processes and making payments transparent. But, although the authorities of the country have asked for our help with bitcoin, this is not an issue where the World Bank can help, given the problems with transparency and environmental friendliness, ”- said the representative of the World Bank.
Blockstream’s director of strategic affairs Samson Mow reacted strongly to the World Bank’s statement, I wrote on Twitter that the organization is outdated and needs to be gotten rid of.
Earlier, Johns Hopkins University professor of applied economics Steve Hanke said that the use of bitcoin as a means of payment in El Salvador would destroy the country’s economy.
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