The bitcoin price began to fall after the World Bank refused to support the cryptocurrency. The global financial institution named the main reasons for the decision.
The El Salvadorian authorities have requested assistance from the World Bank for the introduction of bitcoin in the country. El Salvador’s finance ministry planned to use cryptocurrency as a parallel legal tender alongside the dollar.
However, El Salvador received a categorical refusal to provide technical assistance from the World Bank, since cryptocurrency mining is harmful to the environment, and the use of bitcoin itself cannot be called transparent.
“We are committed to helping El Salvador in a variety of ways, including ensuring transparency of currencies and regulatory processes. While the government did ask us for help with Bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.” – the representative of the World Bank explained the reasons the refusal.
The explanations of the World Bank did not stop the fall in the bitcoin price in the global cryptocurrency market. Immediately after the refusal to support El Salvador, the bitcoin rate sank to the level of 38.22 thousand dollars per coin. Later, the data of the CoinDesk exchange showed a slight increase in the value of bitcoin, the rate rose to 39.33 thousand dollars.