El Salvador gears up for stablecoin launch

The government of El Salvador has revealed the country is to launch its own stablecoin – the Colon Dollar – aimed at facilitating day-to-day commerce for its citizens.

This follows on from the recent passing of a so-called ‘Bitcoin bill’, proposed by visionary President Nayib Bukele, which has seen the country hit headlines across the world – as the first nation to adopt Bitcoin (BTC) as legal tender.

The surge of interest around cryptocurrencies in El Salvador has given rise to a digital gold rush across Latin America, with rapid moves towards adoption from Mexico to Paraguay.

The crypto industry represents an attractive proposition for the troubled South American economies. It’s a rare opportunity to draw in high tech business that can create good opportunities and jobs, and solve major developmental issues such as access to banking and uncontrolled inflation rates.

San Salvador-based newspaper El Faro reported that the brothers of President Nayib Bukele – Ibrajim and Yusef Bukele – have begun speaking to phase 1 investors about the proposal for an El Salvador stablecoin.

However, the president’s own press secretary seemed unaware of whether or not this was an official play by the country’s leader.

“The only public policy that [the government] has backed is that of Bitcoin alongside the dollar, with the dollar as the currency of reference. All the rest were discarded ideas or simply third-party proposals,” the spokesman said.

“The president’s brothers don’t work for the government, but it’s a secret to nobody that the president listens to them and frequently consults with them to make his decisions.”

The brothers claim to be acting in a representational capacity for President Bukele, and have begun to showcase the concept of the stablecoin, which will provide a digital asset free from the ongoing volatility of BTC.

The stablecoin will launch by the end of 2021.

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