According to Reuters, the Central American Bank for Economic Integration (CABEI) announced that the multilateral development bank would provide El Salvador technical support in implementing Bitcoin as legal cash.
Dante Mossi, CABEI’s executive president, said at a news conference on Monday that the development bank would work with El Salvador’s finance ministry and central bank to pick a technical team to implement the plan.
El Salvador’s government approached the organization for help in establishing Bitcoin as a legal tender currency in the country. At the press conference, Mossi verified this.
“We feel very proud that your government’s first choice in soliciting help and support with the implementation is the Central American Bank for Economic Integration,”he delivered the message to El Salvador President and his government.
Mossi went on to say that no other country has adopted Bitcoin as widely as El Salvador. He recognized that finding the right strategy to safeguard the public is a difficulty.
According to Mossi, members of CABEI and officials from El Salvador’s central bank, and the minister of finance will compose the bank’s technical advisory committee. The bank also plans to assist with project planning and the legal challenges of establishing Bitcoin as El Salvador’s currency.
CABEI is an international development bank financial organization founded in 1960 by El Salvador, Nicaragua, Gaugamela, Costa Rica, and Honduras.
Belize, the Dominican Republic, and Panama are non-founding members, while South Korea, Argentina, Mexico, and Spain are extra-regional members.
Challenges in Bitcoin Adoption
El Salvador became the first country to recognize Bitcoin as legal cash last week after Congress supported President Nayib Bukele’s proposal.
After announcing earlier this month that El Salvador has teamed with digital wallet firm Strike to construct the country’s current financial infrastructure utilizing Bitcoin technology, President Bukele filed the measure to Congress.
A few days later, El Salvador’s president announced that the country’s state-run geothermal energy provider would begin mining Bitcoin using electricity generated by volcanoes. The news came only hours after the Central American country’s congress agreed to recognize bitcoin as legal cash.
On the other hand, the IMF has cautioned El Salvador about the dangers of utilizing Bitcoin for everyday transactions. A delegation from the International Monetary Fund is expected to meet with El Salvador’s president. The international organization considers a new aid package for the country as it recovers from the coronavirus outbreak.
Meanwhile, President Bukele indicated that he was in discussion with the IMF and that he would explain the workings of the currency in detail and the situation of the economy now that it is a legal tender in the country.