TL;DR Breakdown
• The Colón dollar could reach Salvadorans before the end of the year.
• El Salvador stablecoin can free its economy against the US dollar.
Nayib Bukele and the El Salvador authorities want 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 crypto will serve to pay for goods and services within the El Salvador limits, as reported by some local media.
The brothers of the El Salvador president, Yusef and Ibrajim Bukele, are shows as investors in the Colón dollar. This unique crypto can be launched at the end of the year. Government authorities are still arguing about the token launch.
El Salvador’s stablecoin
The Salvadoran BCR would regulate the Colón dollar. This crypto will have a value equal to the United States dollar, and it will also be linked to the state’s wallet.
Bukele Ibrahim shows that the BCR created a reserve supporting the Colón dollar to promote the token. In this way, the investor knows that the stablecoin is reliable and will not hesitate to change its colones.
This announcement comes almost a month after Nayib Bukele approved the use of Bitcoin among citizens. Bukele insists that BTC can be used legally and even asked companies to use it. Many Salvadorans are anxious about this new financial ecosystem that takes cryptocurrencies.
Bukele is on the right track in the Salvadoran economy
With the Bitcoin adoption and a stablecoin in El Salvador, the government could regain its ability to create local currencies. Since 2001 El Salvador has not been able to issue its currency since its economy is based on the US dollar.
On the other hand, some economists argue that this country’s act is irrelevant and even brand it stupid. Many people and governments are against cryptocurrencies, so it is common to see this type of criticism.
Although Bitcoin and other crypto are considered authentic and legal money, many people disagree with their market. Economists have taken Bitcoin as volatile crypto that lends its operations to money laundering.
However, like El Salvador, other countries around the world show that crypto has potential. The United Kingdom, India, and China plan to create their stablecoin after creating a regulatory campaign against crypto. The United States becomes one of the countries where cryptocurrencies are most used, especially Bitcoin, for their great value.
Opinions on crypto are varying, but in general, it is a new financial market that offers thousands of opportunities. Bukele’s initiative in the Central American country is excellent, motivating other countries to adopt crypto. The El Salvador government may announce new measures on cryptocurrencies in the coming weeks.
