World Bank rejects El Salvador request for help on bitcoin implementation

World Bank rejects El Salvador request for help on bitcoin implementation

SAN SALVADOR/NEW YORK: The World Bank said on Wednesday it could not assist El Salvador's bitcoin implementation given environmental and transparency drawbacks. "We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes,“ said a World Bank spokesperson via email. "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.“ Earlier on Wednesday, Salvadoran Finance Minister Alejandro Zelaya said the country had sought technical assistance from the Bank as it seeks to use bitcoin as a parallel legal tender alongside the US dollar. The minister also said ongoing negotiations with the International Monetary Fund have been successful, though the fund said last week it saw "macroeconomic, financial and legal issues“ with the country's adoption of bitcoin. Zelaya said on Wednesday the IMF was "not against“ the bitcoin implementation. The IMF did not respond to a request for comment. Investors have recently demanded higher premiums to hold Salvadoran debt, on growing concerns over the completion of the IMF deal, key to patching budget gaps through 2023. On Wednesday, bonds sold off across the curve with the 2032 issue down more