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November 29, 2022
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World Bank: we will not support El Salvador’s actions to recognize BTC as legal tender –

The World Bank does not endorse El Salvador’s actions regarding Bitcoin. The country’s authorities have recognized the cryptocurrency as legal tender, which is being met with increasing criticism.

World Bank: We will not support the activities of El Salvador

El Salvador recently made BTC legal tender. It turns out, however, that many international organizations do not like it. For example, the International Monetary Fund (IMF) notes that the matter may be controversial – both legally and economically.

Now the World Bank has similar doubts.

– While the government has asked us for help on Bitcoin, this is not something the World Bank can support, given environmental and transparency shortcomings – He said media World Bank spokesman.

However, the World Bank noted that it could help El Salvador in other ways. For example, he pointed to “currency transparency and regulatory processes ”.

In turn, on Wednesday Salvadoran finance minister Alejandro Zelaya said that the country turned to the World Bank for help.

I want to announce that we have requested technical assistance from the World Bank

– he wrote on Twitter.

The goal was to make the bank could “Accompany El Salvador in implementing and regulating Bitcoin as legal tender.”

The World Bank’s decision outraged Bitcoin supporters. Anthony Pompliano tweeted in response to the news that “The World Bank hasn’t figured out how to make money with Bitcoin.”

Samson Mow, the CSO of Blockstream’s blockchain development company, was irritated by the news. In his opinion, the World Bank is something outdated.

Critics

While the new Bitcoin law has generated a lot of excitement among cryptocurrency supporters around the world, it has also received a lot of criticism. Economist Steve Hanke said El Salvador using Bitcoin as legal tender could “Completely collapse your economy.”

The International Monetary Fund will want to punish El Salvador for such a bold decision and make it difficult for the government to negotiate a $ 1 billion loan to support the country’s economy.

IMF spokesman Gerry Rice noted that the government’s new decision posed a series of financial, legal and macroeconomic problems that require “Very careful analysis.”

However, it is worth adding that some companies rush to help. Athena Bitcoin has indicated it will act quickly to provide as many bitomats as possible across El Salvador. Today on Twitter, the company asked the president of the country if “1000 ATMs” enough, and the politician replied jokingly: “1000? Maybe 1500? “

Yesterday, El Salvador’s Minister of Labor and Social Welfare, Rolando Castro, denied claims that the ministry had started a discussion on the option of using Bitcoin to pay employees’ wages, noting that there was “Too early to talk about wages [w BTC]”.

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