El Salvador asked the World Bank for help in introducing Bitcoin as legal tender, but was quickly rejected, with the international organization citing the climate impact of the crypto currency and a lack of transparency. The Central American country became the first country in the world to vote last week to convert Bitcoin into legal tender.
The international organization that supports developing countries financially and economically quickly rejected the application. “While the government has asked us for help with Bitcoin, the World Bank cannot support this given the transparency and environmental shortcomings,” a global report said, the bank spokesman told Insider. The World Bank is one of the many institutions that the Bitcoin’s environmental impact and its concerns about the transparency of crypto currencies mirror that of central banks and regulators around the world who are concerned that Bitcoin is being used for money laundering and drug crime.
The computational process that secures the network and creates new bitcoins consumes a lot of energy and uses as much energy as entire countries every year, according to a study by the University of Cambridge’s request for help and El Salvador’s rejection are signs that the Implementing Bitcoin as land bidding is easier said than done. The government plans to use Bitcoin alongside the current legal tender, the U.S. dollar, for daily payments and transactions.Nonetheless, El Salvador’s decision propelled bitcoin, which had fallen to $ 31,000 in early June, while the crypto currency traded at $ 39,220 on Thursday, up around 1.8% from the day.