Central American Financial Institution to Help El Salvador Implement its Bitcoin Legalization

The Central American Bank for Economic Integration (CABEI), an international multilateral development bank headquartered in Honduras, said that it will work with the El Salvadoran government to implement bitcoin as the country’s second legal tender.

• According to Reuters, on Monday (June 14, 2021), the executive president of CABEI, Dante Mossi, revealed the bank’s plans at a new conference. Mossi said that the major financial institution would offer technical assistance to El Salvador to assist the country in legalizing bitcoin.
• The CABEI head also said that it would create a team in collaboration with El Salvador’s Ministry of Finance and the Central Reserve Bank of El Salvador, the country’s central bank, to help implement bitcoin as a legal tender.
• Meanwhile, the latest development comes on the heels of recent criticism by various global financial institutions towards El Salvador’s bitcoin adoption.
• As reported by CryptoPotato, JPMorgan implied that the Central American country’s decision to make BTC its second legal tender had no economic benefit. The Wall Street giant added that the country’s move could jeopardize its negotiations with the International Monetary Fund (IMF).
• The IMF and the Bank for International Settlements (BIS) also commented on El Salvador’s bitcoin move. While the IMF said that it would monitor subsequent developments, the BIS referred to the country’s BTC legalization as an interesting experiment while maintaining its skeptic stance towards the flagship cryptocurrency.
• Meanwhile, El Salvador’s President Nayib Bukele said that the country is working towards using volcanic energy to power bitcoin mining.