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El Faro, an investigative news site, stated that El Salvaodor’s administration was intending for its residents to utilise a stablecoin in addition to Bitcoin.
El Salvador’s government could be planning to release a U.S. dollar stablecoin, investigative news outlet El Faro reported Friday. The currency would be issued by the central bank, pegged to the value of the U.S. dollar and backed by reserves of real U.S. dollars.
El Faro uncovered secret meeting videos that reveal the El Salvadoran president’s brothers, who are not in the administration but often advise the president, intending to establish a national US dollar stablecoin by next year.
The cryptocurrency would be known as the “Colón-Dollar,” after the country’s former national currency, which was replaced by the US dollar in 2001.
El Faro stated that a government spokeswoman indicated the plans had been cancelled, but then claimed that they were still in the works, citing a “source familiar with the negotiations.”
Some of the conversations mentioned by El Faro occurred after President Bukele stated in June that Bitcoin will become legal money in the tiny Central American country. According to El Faro, senior government officials, private contractors, and external consultants were present.
The brothers went on to say that they want all cryptocurrencies to be legal money in El Salvador. According to El Faro, Bukele’s brother, Ibrajim, stated, “But for that to happen, we need government infrastructure that is up to the task for what is ahead.”
El Salvador became the world’s first government to make Bitcoin legal money after President Bukele revealed the intention during the Bitcoin 2021 conference in Miami last month.
However, major institutions such as JP Morgan, US authorities, and even the World Bank have voiced worries about how the country’s Bitcoin regulation would operate.
President Bukele is very popular in El Salvador, a poor and crime-ridden country. But he has been criticized for the way he has dealt with gang members, his attacks on the press and when he marched troops into parliament to pressure lawmakers.