The investigative news portal” El Faro ” reports: The government of El Salvador plans to develop a stablecoin for citizens to use in everyday life – as well as Bitcoin.

Only in June, El Salvador officially made Bitcoin legal tender. A newspaper in the country now claims that the government plans to publish a national stablecoin. However, the government says the plans have been scrapped.

El Salvador’s government may plan to issue a US dollar stablecoin. This is reported by the investigative news agency El Faro on Friday. The currency would be issued by the Central Bank, would be pegged to the value of the US dollar and backed by reserves of real US dollars.

Secret Meetings Reveal Stablecoin Plans

Videos of private meetings El Faro has received show the Salvadoran president’s brothers, who are not part of the government but often advise the president on how to plan the launch of a national US dollar stablecoin-and apparently already until next year.

The cryptocurrency is said to be called the” Colón dollar ” -a reference to the country’s former national currency, which was replaced by the US dollar in 2001.

According to El Faro, a spokesman for the government has said that the plans have been rejected-but at the same time claims that the plans are still underway. The newspaper quotes a ” source familiar with the negotiations.”

Some of the meetings cited by El Faro took place after President Bukele announced in June that Bitcoin would become legal tender in the tiny Central American nation. Senior government officials, private contractors and outside consultants attended, El Faro said.

According to the brothers, it is planned that all cryptocurrencies in El Salvador will become legal tender. “But for this to happen, we need a government infrastructure that is up to what lies ahead,” Bukele’s brother Ibrajim said, according to El Faro.

El Salvador is the first country in the world to make Bitcoin legal tender – shortly after President Bukele announced the plan last month at the “Bitcoin 2021 Conference” in Miami.

Since then, investment banks such as JP Morgan, US officials and even the World Bank have expressed concerns about how the country’s Bitcoin law would work.

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 for having troops march into parliament to pressure lawmakers.

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Text credit: Decrypt

Last updated on July 18, 2021

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