El Salvador plans to launch stablecoin later this year
Nayib Bukele and the El Salvador authorities plan to launch a stablecoin by the end of 2021. Although Bitcoin is free trade in the Central American country, the government will try to create its stablecoin. This new cryptocurrency will be used to pay for goods and services in El Salvador, as reported by some local media.
El Salvador plans to launch stablecoin later this year – Colón
The brothers of the President of El Salvador, Yusef and Ibrajim Bukele, are investing in the Colón dollar. This unique cryptocurrency could hit the market by the end of the year. Government agencies are still arguing about the token launch.
The Colón dollar, the stablecoin of the Salvadoran government, is produced by the central bank, backed by US dollar reserves, and linked to the government’s wallet, chivo. To encourage its use, Ibrajim hinted during his meeting with stablecoin experts on June 4 that the government would first create a dollar reserve in support of the Colón dollar. Salvador BCR will adjust the Colón dollar. This cryptocurrency will be equivalent to the value of US dollars and will also be tied to the state wallet.
The announcement comes just weeks after the Central American nation’s government unanimously passed a presidential Bitcoin bill that makes legal tender for the leading cryptocurrency and requires all businesses to accept it as payment for products and services.
Bukele insists that BTC can be used legally and has even asked companies to use it. Many Salvadorans are concerned about this new financial ecosystem that uses cryptocurrencies.
El Salvador plans to launch stablecoins later this year. Is Bukele on the right track in the Salvadoran economy?
With the introduction of bitcoin and a stablecoin in El Salvador, the government can regain its ability to create local currencies. Since 2001, El Salvador has not been able to issue its own currency because its economy is based on the US dollar.
On the other hand, some economists consider the country’s actions inappropriate and even stupid. Many people and governments are against cryptocurrencies, so this type of criticism is common.
Although Bitcoin and other cryptocurrencies are considered legitimate and authentic money, many people disagree with their market. Economists have viewed Bitcoin as a volatile cryptocurrency, and many use its activities to launder money.
Previously, a group of citizens partnered with the Farabundo Martí National Liberation Front (FMLN) political party had filed a lawsuit alleging that El Salvador Bukele’s bitcoin adoption program was unconstitutional.
The World Bank has also turned down El Salvador’s request to help the country move to Bitcoin as legal tender.
However, other countries around the world, such as El Salvador, are also showing that cryptocurrencies have potential. The UK, India and China plan to create their own stablecoins after launching a regulatory campaign against cryptocurrencies. The United States is becoming one of the countries where cryptocurrencies are most widely used, especially Bitcoin, because of its high value.
Opinions on cryptocurrencies vary, but overall it is a new financial market that offers thousands of opportunities. Bukele’s initiative in the Central American country is great and spurs other countries to adopt crypto. The government of El Salvador could announce new measures on cryptocurrencies in the coming weeks.
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