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- El salvador, first Latin American nation to adopt bitcoin as legal tender
- World Bank declines El Salvador’s request to help in transition of making bitcoin as legal tender
- Prominent Bitcoiners have derided the World Bank action
The World Bank has declined El Salvador’s request for help in the transition to using bitcoin as legal tender. El Salvador is the first Latin American nation to adopt Bitcoin as legal tender. The World Bank cited environmental concerns and transparency issues as reasons for declining El Salvador’s request for help on Bitcoin transition as an official currency.
A World Bank spokesperson said that El Salvador Government had indeed asked the World Bank to help the nation deal with implementation and regularisation in the run-up to making bitcoin a legal tender.
However, the World Bank has agreed to help El Salvador in other ways like currency transparency and regulations.
El Salvador Finance Minister had on Wednesday said that his nation had asked for technical assistance from Banco Mundial, the Spanish equivalent of the World Bank, in the implementation and regularization of Bitcoin as legal tender.
World Bank actions criticised by Bitcoiners
Prominent Bitcoiners have derided the World Bank action. However, the move was widely anticipated. Prominent Bitcoin analyst Anthony Pompliano said that the World Bank could not figure out how to earn money from Bitcoin. Creator of blockchain game Infinite Fleet, Samson Mow, noted that World Bank is still stuck in its archaic mindset.
Adopting Bitcoin as a legal tender will be disastrous says economists
President Nayib Bukele Bitcoin law, passed by the Assembly of El Salvador, has ruffled many feathers and excited Bitcoin proponents and its critics in equal measure. Economist Steve Hanke has dubbed the move to adopt bitcoin as legal tender as disastrous for the El Salvador economy. It will lead to the complete collapse of the economy, Hanke added.
Adopting Bitcoin as a legal tender can jeopardize $1 billion aid package
The IMF has also expressed its displeasure over president Nayib Bukele Bitcoin law which paves the way to making bitcoin legal tender in El Salvador. The IMF has also made it clear that the move could jeopardize negotiations over a $1 billion aid to help El Salvador economy recover from the pandemic. El Salvador’s move to adopt Bitcoin as a legal tender will lead to several financial, legal and macroeconomic consequences. The move will require very careful analysis.
President Bukele, making Bitcoin the legal tender finds many supporters
However, there is no shortage of supporters for the revolutionary steps taken by El Salvador President Nayib Bukele, making Bitcoin the legal tender in the nation. Athena Bitcoin said that it would fast track setting up of Bitcoin ATM’s across San Salvador. The firm asked President Bukele if 1000 ATM’s were enough; the President jokingly asked How about 1500?
However, the situation is very fluid right now and in a transition phase. Rolando Castro, El Salvador’s Minister of Labor and Social Welfare, denied claims that the ministry has initiated discussions about using Bitcoin for employee salary payments. Castro added that it is too premature to talk about wages right now.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
