According to regional reports, the current leadership of El Salvador is in the process of developing a stablecoin that will be backed by the US dollar. Meanwhile, others believe that the stablecoin idea has now been discarded after Nayib Bukele’s government decided to use Bitcoin.
Some say the Colón dollar is being developed, others claim the Salvadoran stablecoin idea has been scrapped
There is much discussion about a report by the regional news agency El Faro. The investigation claims that Salvadoran President Nayib Bukele and his regime are planning to issue a stablecoin. The El Faro report links to videos showing the president’s brothers discussing the stablecoin called the Colón dollar.
The El Faro report notes that a spokesman for the Bukele regime says the stablecoin plans have been scrapped, but “sources familiar with the matter” told El Faro that they disagree. This is because the meetings on the Colón dollar are still ongoing and will take place after Nayib Bukele passed the new Bitcoin tendering law.
“El Faro has a copy of several videos that add up to more than two hours of virtual meetings in which various negotiations occur with delegates from at least five technology companies and in which the Bukele brothers are protagonists,” said reporters Sergio Arauz, Nelson Rauda and Roman Gressier wrote.
“El Faro has also received documents registering the action plan proposed by foreign companies to encourage the introduction of a new financial system and the new currency,” the report added.
#efNEWSLETTER📰 The Bukele government planned to introduce a national stablecoin cryptocurrency by the end of this year, which it named the “Colón dollar”. https://t.co/Gy54hmHXEI
– El Faro (@_elfaro_) July 17, 2021
In a discussion on Twitter, the owner of the Twitter account associated with the busy Bitcoin Beach community in Playa El Zonte believes the stablecoin idea has been scrapped. The statement was in response to a person from El Salvador who said the stablecoin idea reminded her of the Petro from Venezuela.
“To my understanding, they considered going this route (which would have been very worrying) but decided to accept Bitcoin instead,” the Twitter account @bitcoinbeach tweeted. “From what I hear, that’s no longer a consideration. They gave up control to instead adopt an open protocol, ”added the account.
However, another person disagreeing with the Bitcoin Beach account and believe something else. The person said that “several” of his “Salvadoran correspondents” confirmed the El Faro article, but he could not “vouch for its accuracy”.
Colón dollars could be incorporated into chivo, alleged meetings with blockchain teams
The El Faro source notes that the stablecoin called the Colón dollar could be launched by the end of the year. Financial reporter Frances Coppola she believes predicted the creation of a Salvadoran stablecoin in a tweet she wrote on June 9, 2021.
“I think he will. It is not covered with real USD, but with a ‘USD-equivalent’ stablecoin ‘”, said Coppola at the time.
A large number of Salvadorans said they were dissatisfied with Bukeles vaccination mandates and said the Salvadoran “population” does not want these Covid-19 vaccines. One person tweeted Bukele and said: “The Bitcoin community does not support you.”
Additionally, the regional source, claiming stablecoin creation still plays a role, stated that Bukele’s brothers were responsible for the concept and that the Colón dollar would be incorporated into the government wallet called “Chivo”.
In addition to the video meetings, the sources also stated that members of Bukele’s regime met with blockchain teams from Whizgrid, Alogrand, and Cardano.
What do you think of El Salvador allegedly building a stablecoin backed by the US dollar? Do you think the concept was discarded after the country introduced Bitcoin? Let us know what you think on this matter in the comments below.
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