World Bank Denies El Salvador Assistance With BTC Implementation
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In an email sent on Wednesday, the World Bank said it cannot provide any assistance to El Salvador as the country implements BTC as legal tender.
Despite its commitment to help El Salvador with currency transparency and regulations, the World Bank denied aiding the country’s BTC implementation. A spokesperson for the global financial institution cited BTC’s environmental and transparency fallibility as the reasons behind their stance,
“While the government did approach us for assistance on BTC, this is not something the World Bank can support given the environmental and transparency shortcomings.”
This development in El Salvador comes as countries around the world scramble to understand digital currencies.
El Salvador’s BTC efforts
Regardless of the World Bank’s decision, El Salvador is a pioneer in the crypto space. Last week, after a monumental ruling, the country became the first in the world to make BTC legal tender.
The congressional hearing on the issue saw an overwhelming majority in favor of the national crypto adoption. Lawmakers see this as a way to increase “the national wealth for the benefit of the greatest number of inhabitants.” Prices can now be posted in BTC, along with the ability to make tax payments using the cryptocurrency.
El Salvador hopes to become another haven, akin to Malta, that will attract investors and enthusiasts in the space. Crypto entrepreneurs will have the ability to obtain permanent residency in the country, and benefit from no capital gains taxes on their digital assets.
In addition, the country’s president Nayib Bukele said he plans to use volcanoes in the country to mine BTC. That announcement came shortly after the country’s historical ruling. By harnessing geothermal energy to create electricity, the country can mine BTC with zero carbon emissions.
Nonetheless, the World Bank’s decision against aiding El Salvador’s BTC implementing ventures highlights the global environmental concerns over the cryptocurrency. It remains to be seen if El Salvador’s new mining practices and widespread adoption will alight new trends in the space.
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