World Bank Denies Any Help to El Salvador for Bitcoin (BTC) Implementation

Published by
World Bank Denies Any Help to El Salvador for Bitcoin (BTC) Implementation

After the IMF raised concerns about El Salvador adopting Bitcoin (BTC) as a legal tender last week, the World Bank has rejected any kind of help for Bitcoin implementation citing transparency and environmental concerns.

On Wednesday, June 16, El Salvador’s Finance Minister Alejandro Zelaya said they are currently seeking technical assistance from World Bank to make Bitcoin a legal tender along with the existing USD.

Besides, the minister also called current negotiations of the International Monetary Fund (IMF) ‘successful’. However, the IMF has already raised legal and macroeconomic issues concerning Bitcoin adoption. In an email to Reuters, the World Bank spokesperson wrote:

“We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes. 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.”

On the other hand, the Central American Bank for Economic Integration (CABEI) is ready to help El Salvador in its Bitcoin implementation. CABEI Executive President Dante Mossi has also assured technical assistance while working closely with the El Salvador Finance Ministry and central bank.

Economist Steve Hanke: Adopting Bitcoin (BTC) Can Collapse El Salvador’s Economy

Steve Hanke, an economist and professor at Johns Hopkins University, has raised serious concerns over El Salvador’s decision to make Bitcoin a legal tender. During his interview with Kitco News, he called this decision “stupid”.

Considering the state of El Salvador’s economy, Hanke believes it is not feasible to use Bitcoin in everyday transactions. Hanke added:

“The big problem with cryptos, in general, is that you can’t convert them into actual real legal tender that’s usable cheaply, and quickly. You can’t Bitcoin, for example, cheaply and easily convert into U.S. dollars.”

If this problem aggravates further, Hanke believes that the country will be drained of the U.S. Dollar with BTC transactions and the entire economy could “collapse”.

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

SEC Chair Paul Atkins Says Crypto Is Top Priority At SEC CFTC Roundtable

The U.S. Securities and Exchange Commission has placed cryptocurrency at the top of its current…

September 30, 2025
  • 24/7 Cryptocurrency News

Legal Expert Breaks Down XRP’s Appeal as Ripple SWIFT Debate Heats Up

The running rivalry between Ripple and SWIFT resurfaced after a community callout to Ripple’s CEO.…

September 30, 2025
  • 24/7 Cryptocurrency News

Crypto Stakeholders Push Back as Banks Seek Yield Ban Provision in CLARITY Act

A dispute between crypto stakeholders and traditional banks has reemerged as lawmakers in the Senate…

September 30, 2025
  • 24/7 Cryptocurrency News

Crypto ETFs Approval Faces Uncertainty as Government Shutdown Looms, Bloomberg Analyst Says

Bloomberg analyst James Seyffart has shared his thoughts on a potential approval of the pending…

September 29, 2025
  • 24/7 Cryptocurrency News

Fed’s Hammack Backs Restrictive Policy Over Rate Cuts Amid Inflation Concerns

Cleveland Federal Reserve President Beth Hammack has advocated for a restrictive monetary policy amid growing…

September 29, 2025
  • 24/7 Cryptocurrency News

Fed Governor Chris Waller Champions Stablecoins as a Tool for Cheaper Global Payments

Federal Reserve Governor Chris Waller has said that stablecoins and public blockchains could cut cross-border…

September 29, 2025