The plan El Salvador has, to implement Bitcoin as legal tender has been rejected by World Bank.
While making this decision, factors like transparency and the environmental impact of Bitcoin mining were put into consideration.
The zeal to make a difference and make an impact in this modern and innovative age is obviously one of the reasons the Central American country announced plans to become the first nation to formally adopt the digital currency earlier this month.
There is a plan for the country to give Bitcoin a more acceptable value at the global level as one of them is to use the digital currency as parallel legal tender alongside the US dollar.
At the moment, the task which the country has to ensure that Bitcoin is accepted nationwide in the next three months has become a bigger one, since the international lender made its decision.
World Bank spokesperson who wrote on the Reuters news agency via email said, “While the government did approach us for assistance on Bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”
This development occurred after El Salvador’s Finance Minister Alejandro Zelaya said on Wednesday that the country had asked the World Bank for technical assistance with the implementation of the cryptocurrency as an official method of payment.
In response to this, Mr Zelaya also said the discussions with the International Monetary Fund (IMF) have been successful.
Interestingly, he also stressed that the IMF was “not against” the implementation of Bitcoin.
Meanwhile, the IMF last week revealed it saw “macroeconomic, financial and legal issues” with El Salvador’s adoption of Bitcoin.