Nayib Bukele and the Salvadoran authorities want to launch their own stablecoin by the end of 2021. Although BTC is legal tender in Central America country, the government will try to create a stablecoin. This new cryptocurrency will be used to pay for goods and services within El Salvador, according to some local media.
The brothers of the President of El Salvador, Yusef and Ibrahim Bukele, are listed as investors in the Colon Dollar. Governments are still debating the launch of the token.
Salvador launches its own stablecoin, is he on the right track?
The Central Bank of El Salvador (BCR) will regulate the Colon Dollar. This cryptocurrency will have a value equal to the US dollar and will also be linked to the state wallet. Ibrahim Bukulele said on the promotion of the token that BCR had created a reserve to cover the Column Dollar. In this way, the investor knows that stablecoin is reliable and will not hesitate to change his Colona.
The announcement comes almost a month after Nayib Bukele approved the use of BTC among citizens. Bukele insisted that BTC could be used legally and even asked the company to do so. However, many Salvadorans are concerned about this new financial ecosystem that accepts cryptocurrencies.
By adopting BTC and stablecoin in El Salvador, the government could regain the ability to create local currencies. Since 2001, El Salvador has not been able to issue its currency because its economy is based on the US dollar. On the other hand, some economists claim that the country’s actions are irrelevant and even call it stupid. Many people and governments are against cryptocurrencies, so it is common to hear this type of criticism.
Although BTC and other cryptocurrencies are considered authentic and legal assets, many people disagree with their market. Economists see BTC as a volatile cryptocurrency that allows money laundering through its operations.
However, like El Salvador, other countries around the world show that cryptocurrency has potential. The United Kingdom, India and China plan to create their stablecoins after launching a anti-cryptocurrency campaign. The USA is becoming one of the countries where cryptocurrencies are most often used, especially BTC, due to its great value.
Opinions on cryptocurrencies differ, but in general it is a new financial market that offers thousands of opportunities. Bukele’s initiative in the Central American country is excellent and motivates other countries to accept the cryptocurrency. The El Salvador government may announce new steps regarding cryptocurrencies in the coming weeks.