World Bank ‘Committed’ to Help El Salvador But Can’t Support its Bitcoin Adoption Due to ‘Shortcomings’

Meanwhile, El Salvador’s negotiations with the IMF for $1 billion support have been successful, and they are “not against” the implementation of bitcoin. Also, a Panamanian congressman will present a bill within the month to make bitcoin legal tender.

The World Bank said it could not assist El Salvador’s Bitcoin implementation due to environmental and transparency shortcomings.

“We are committed to helping El Salvador in numerous ways, including for currency transparency and regulatory processes,” a World Bank spokesperson told Reuters.

“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.”

On Wednesday, Salvadoran Finance Minister Alejandro Zelaya said the country had requested technical assistance from the World Bank to use Bitcoin as a legal tender parallel to the US dollar.

But the World Bank has decided not to support the implementation of Bitcoin in the Central American country.

“As if the World Bank has worked in transparent and environmentally-friendly ways over the last five decades,” said Alex Gladstein, Chief Strategy Officer at Human Rights Foundation.

Meanwhile, El Salvador’s ongoing negotiations with the International Monetary Fund (IMF) to obtain $1 billion support have been successful.

However, the international body has indicated that it sees some legal and economic problems in the adoption of bitcoin, but Zelaya assured that the IMF “is not against” the implementation of bitcoin.

Meanwhile, Panamanian congressman Gabriel Silva is following El Salvador’s path and is planning to present a bill in the National Assembly within the month that will make bitcoin legal tender in the country.

“I found El Salvador’s project positive, ambitious, interesting, and with good acceptance,” Silva said, adding that he seeks to constitute a “positive competition.”

The current constitution of Panama, which does not have a central bank and has adopted the US dollar, prohibits the government from mandating only certain currencies as legal tender, which could facilitate the incorporation of bitcoin as a currency, he said.

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