The World Bank has rejected the government of El Salvador’s request to help the country implement Bitcoin as legal tender, Reuters first reported late Wednesday.
Why it matters: The international lender’s rejection could hamper the government’s goal of making the digital currency accepted across the country within three months.
Driving the news: El Salvador’s legislature last week became the first in the world to vote in favor of formally adopting bitcoin, with plans to use it alongside the U.S. dollar, the nation’s official currency.
- Finance Minister Alejandro Zelaya said earlier Wednesday that the government had asked the World Bank for “technical assistance” in implementing the cryptocurrency, per the BBC.
- Zelaya said government officials had also held talks with the International Monetary Fund, which he said was “not against” the plans.
What they’re saying: A World Bank spokesperson confirmed to Reuters that “the government did approach us for assistance on bitcoin,” but said it couldn’t directly help “given the environmental and transparency shortcomings” of bitcoin.
- “We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes,” the spokesperson said.
- An IMF spokesperson told reporters last week: “Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis.”
Go deeper: El Salvador moves into bitcoin
Source: Axios Breaking News