Not long ago, El Salvador became the first nation in the world to adopt bitcoin as legal tender. Of course, this move delighted crypto enthusiasts. However, the country's law faced an insurmountable obstacle in the form of the global financial system.
The World Bank rejected a request from El Salvador to help with the implementation of BTC as an official method of payment. The international financial institution cited concerns over the environmental impact of bitcoin mining. The bank stated that it would not support the initiative of Salvadoran President Nayib Bukele and refused to provide technical assistance.
"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," a spokesperson at the World Bank said.
The International Monetary Fund is also concerned about the country's move to make bitcoin legal tender. The organization noted that it saw "macroeconomic, financial and legal issues" due to El Salvador's adoption of the digital coin.
Thus, the lack of technical capacity and support from the main financial institutions could mean that El Salvador will not be able to hit its deadline to ensure that bitcoin is accepted nationwide in the next 90 days.
