CABEI to back El Salvador’s bitcoin push

The Central American Bank for Economic Integration (CABEI) will create a technical group to support the Salvadoran government in implementing bitcoin as a legal means of payment.

#DeDinero Regarding the approval of the #LeyBitcoin in #ElSalvador, the president of @BCIE_Org, @DanteMossi, reports that they are collaborating with the Ministry of @HaciendaSV and the @bcr_sv “to select a first-rate technical team to accompany the Salvadoran Government”. pic.twitter.com/3i0TfX4sS7

— Diario El Salvador (@elsalvador) June 14, 2021

Dante Mossi, president of CABEI, said he is proud of the trust placed in the Salvadoran government and its president Nayib Bukele.

“This is a challenge that must be answered, and the best way to protect consumers must be found,” he said at a press conference.

The technical group will include experts from the organization, as well as the Salvadoran Ministry of Finance and the central bank. They will be tasked with planning the project, conducting a risk assessment, and examining the legal aspects of adopting bitcoin as a means of payment.

At present, the Salvadoran authorities are consulting with the startup Strike Wallet, which has built a wallet for the Lightning Network. The solution it has developed enables transfers of bitcoin to and from bank accounts.

The Salvadoran government plans to create a digital wallet and a guarantee fund. The objective is to provide citizens with seamless switching between bitcoin and the US dollar (or stablecoins pegged to them).

Earlier, remittance services in El Salvador were lukewarm toward supporting bitcoin.

ForkLog experts doubted a positive effect for El Salvador’s economy from recognizing bitcoin as a means of payment. JPMorgan analysts reached similar conclusions.

The International Monetary Fund said that such a move could potentially create a number of risks and regulatory issues.

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