The head of the Central American Bank for Economic Integration (CABEI) said the multinational development bank El Salvador would offer technical assistance in adopting Bitcoin as legal tender, Reuters reported on Monday.
In a press conference on Monday, Dante Mossi, executive president of CABEI, said the development bank would work with the Treasury Department and the Central Bank of El Salvador to select a technical team to implement it.
The government of El Salvador asked the institution for assistance in implementing the Bitcoin cryptocurrency as legal tender in the country. Mossi confirmed this at the press conference.
“We are very proud that the Central American Bank for Economic Integration is the first choice of your government to ask for help and assistance with the implementation,” he conveyed the message to the President of El Salvador and his government.
Mossi also admitted that no other nation has spread Bitcoin as widely as El Salvador. He admitted that figuring out the best way to protect the public was a challenge.
Mossi announced that the bank’s technical advisory group would be formed, involving members of CABEI and officials from the Central Bank and the El Salvador Ministry of Finance. The bank also intends to help with project planning and navigation on the legal aspects of implementing Bitcoin as the currency of El Salvador.
CABEI was jointly founded in 1960 by El Salvador, Nicaragua, Gaugamela, Costa Rica and Honduras operates as a multinational development bank financial institution.
Non-founding members include Belize, the Dominican Republic and Panama, while other supraregional members such as South Korea, Argentina, Mexico and Spain join.
Challenges in introducing Bitcoin
Last week, El Salvador became the first nation to adopt Bitcoin as legal tender after Congress approved President Nayib Bukele’s proposal to adopt the cryptocurrency.
President Bukele presented the bill to Congress after announcing earlier this month that El Salvador is partnering with digital wallet company Strike to develop the country’s modern financial infrastructure using bitcoin technology.
A few days later, the President of El Salvador announced that the country’s state geothermal utility would begin using electricity from volcanoes to operate Bitcoin mining. The announcement came just hours after the Central American nation’s Congress voted to make crypto acceptable legal tender.
However, the IMF (International Monetary Fund) warned El Salvador about the risks of using cryptocurrency for everyday transactions. An IMF team is scheduled to meet with the President of El Salvador while the international organization ponders another package of aid to the nation as it recovers from the crisis Coronavirus pandemic.
Meanwhile, President Bukele announced that he was in talks with the IMF and stated that he would explain in detail how the economy works and the status of the economy now that the currency is legal tender in the nation.
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