El Salvador was once again hit, this time by the World Bank which is rumored to have rejected applications related to the adoption of Bitcoin (BTC) into the country’s economy.
The decision was taken following a warning from the International Monetary Fund (IMF) last week.
El Salvador's finance minister Alejandro Zelaya yesterday said that they were seeking technical assistance from the World Bank to make Bitcoin a legal tender in addition to the US dollar.
However, a World Bank spokesman explained that they rejected El Salvador's application:
“We are committed to helping El Salvador in various aspects including currency transparency and the legal process. However, due to the lack of environmental issues and transparency, the World Bank cannot support this effort. ”
The good news is, the Central American Bank for Economic Integration (CABEI) desperately wants to help El Salvador implement Bitcoin in its economy.
CABEI President Dante Mossi also provided technical assistance in addition to working with the Ministry of Finance and the central bank of El Salvador.
Not sure how successful this effort will be but early on economist Steve Hanke gave a hint that Bitcoin would bring down El Salvador’s economy.
