• Live
    • Audio Only
  • google plus
  • facebook
  • twitter
News > El Salvador

World Bank Not to Assist El Salvador in Bitcoin Implementation

  • Posters offering bitcoin as a form of payment, Chiltiupan, El Salvador, June 10, 2021.

    Posters offering bitcoin as a form of payment, Chiltiupan, El Salvador, June 10, 2021. | Photo: EFE

Published 18 June 2021
Opinion

This international financial institution stated it could not support any assistance on cryptocurrency.

The World Bank (WB) could not assist El Salvador in the implementation of Bitcoin due to factors related to the transparency of this cryptocurrency.

RELATED: 

El Salvador Becomes First Country To Approve Use of Bitcoins

On Wednesday, Salvadoran Finance Minister Alejandro Zelaya remarked his country had sought technical assistance from the World Bank because it seeks to use Bitcoin as a parallel legal tender alongside the U.S. dollar.

This international financial institution stated that although it is committed to helping El Salvador in currency transparency and regulatory processes, it could not support any assistance on cryptocurrency.

Zelaya also mentioned that his country has been holding talks on this issue with the International Monetary Fund (IMF), which is in favor of the adoption of Bitcoin in El Salvador.

Meanwhile, the Central American Bank for Economic Integration (CABEI) stated that it will support the Salvadorian government in the implementation of this cryptocurrency because Bitcoin will help facilitate the sending of remittances to this country.

El Salvador's economy relies heavily on remittances, which make up almost 20 percent of its gross domestic product (GDP). Currently, around two million Salvadoreans living abroad send over US$4 billion in remittances each year.

In this regard, CABEI President Dante Mossi highlighted that transaction costs from sending remittances to El Salvador could considerably come down by using Bitcoins.

Comment
0
Comments
Post with no comments.