Representatives of the Salvadoran government had previously held a meeting with the International Monetary Fund (IMF). The country had already requested help from another bank to adopt Bitcoin (BTC).
In recent days, the government of El Salvador asked the World Bank for technical advice to adopt Bitcoin (BTC) as legal tender. Salvadoran Finance Minister Alejandro Zelaya said that the request seeks to design a framework of action that allows implementing the cryptocurrency properly.
The official noted that he held a meeting with representatives of the International Monetary Fund (IMF) to discuss the Bitcoin Law. Zelaya reiterated that El Salvador will use BTC as an alternative to the US dollar rather than as a replacement.
The minister stated that they have requested technical assistance from both the World Bank and the Central American Bank for Economic Integration (CABEI). He said that they want those organizations to accompany El Salvador in the implementation and regulation of Bitcoin as legal tender.
El Salvador Asks Two Organizations for Advice on Bitcoin
Before asking the World Bank for advice on Bitcoin, El Salvador had talked to another multilateral organization. In recent days, the president of the Central American Bank for Economic Integration, Dante Mossi, spoke about it. He stated that he had received a request for technical assistance from the Salvadoran government.
Mossi confirmed a few days ago that CABEI has not yet begun to provide advice to the Salvadoran government. The bank in question is looking for “experts” in Bitcoin to form a task force to help the economic cabinet.
Curiously, the government is asking banks, regardless of their nature, to help them adopt Bitcoin. In the past, these types of financial institutions have questioned the pioneering cryptocurrency and its scope as a store of value.
Both CABEI and IMF Support the Adoption of Bitcoin
CABEI supports the decision of the President of the Republic, Nayib Bukele, to adopt Bitcoin as legal tender. The position of the IMF representatives is similar to that of this institution, since they are not against the measure either, according to Zelaya.
El Salvador would implement a USD 150 million trust to protect citizens from Bitcoin’s volatility. The finance minister of the Central American country explained that it is a currency board. He stated that the goal of buying Bitcoin is not to have it as an international reserve. The Development Bank of El Salvador (Bandesal) would be in charge of managing this fund.
The Salvadoran government is accelerating the adaptation of a legal framework and a technological infrastructure. With this, they seek to massify the use of Bitcoin in the daily life of Salvadoran citizens. El Salvador will begin to apply the Bitcoin Law 90 days after its publication.
The growing relevance of Bitcoin within the world economy is increasingly evident and different governments know it. However, its decentralized and anonymous nature leads them to work on regulations on this type of asset. This has led El Salvador to request the advice of the World Bank and the Central American Bank for Economic Integration.
By Alexander Salazar
