World Bank refused to support Salvador in the transition to bitcoin

The use of cryptocurrency at the state level is not something that an international financial institution is ready to help, since it considers the first digital coin not transparent enough.

The World Bank said it could not help the El Salvador authorities in the transition to the use of bitcoin, writes Reuters .

The organization noted that they are ready to provide assistance to the government of El Salvador, but the use of cryptocurrency at the state level is not something that the World Bank can support due to the lack of transparency and environmental friendliness of bitcoin.

On June 16, El Salvador Finance Minister Alejandro Zelaya reported that the country’s government has requested technical assistance from the World Bank to use Bitcoin as legal tender along with the US dollar.

According to Zelaya, the International Monetary Fund (IMF) is “not opposed” to El Salvador converting the economy to bitcoin.

On June 10, IMF spokesman Jerry Rice said that there are a number of economic, financial and legal difficulties with the recognition of bitcoin as an official means of payment in El Salvador.

Steve Hanke, professor of applied economics at Johns Hopkins University, also argued that the adoption of bitcoin as a means of payment could completely destroy the economy of El Salvador.

El Salvador became the first country in the world to legalize bitcoin as an official means of payment. The corresponding decision was made by the country’s parliament on June 9.

The World Bank is an international financial institution created to provide financial and technical assistance to poor countries.