El Salvador considers launching a national stablecoin with a plan for its citizens to use it just as they would Bitcoin so let’s read more in our latest cryptocurrency news today.
El Salvador made Bitcoin a legal tender in June and the newspaper in the country claims that the government planned to release a national stablecoin. The government however said that the plans were scrapped. The government could be planning to release a US dollar stablecoin as the news outlet El Faro reported. The currency would be issued by the central bank that is pegged to the value of the US dollar and backed by the US dollar reserves.
The videos of private meetings obtained by the news outlet show the president of El Salvador and his brothers who are part of the government advising him and planning to launch a national US dollar stablecoin by next year. The cryptocurrency would be called “Colon-Dollar” which is a reference to the country’s former national currency that was replaced with the US dollar in 2001. El Salvador considers launching the new national stablecoin but a spokesperson said that the government is with the negotiations. Some meetings cited El Faro happened after President Bukele announced in June that bitcoin will become a legal tender in the nation but senior governemnt officials private contracts and external advisors attended.
#ElSalvador | El Gobierno de Nayib Bukele planea introducir una nueva moneda nacional, una versión digital de los colones salvadoreños, según ha constatado El Faro en videos de negociaciones privadas entre el Gobierno e inversores extranjeros de #Bitcoin.https://t.co/zfn9XaL8L2
— El Faro (@_elfaro_) July 17, 2021
The brothers added that they will like all cryptos to become a legal tender in El Salvador but according to Bukele’s brother, Ibrajim:
“But for that to happen we need government infrastructure that is up to the task for what’s ahead.”
One of the big three credit rating agencies Fitch Ratings, warns that Bitcoin’s expansion in El Salvador could bring many operational and financial risks for banks. Fitch said that Bitcoin as a legal tender could increase the regulatory, financial, and operational risks and. Fitch ratings cautioned that El Salvador’s decision to make BTC legal tender will put banks at risk of money laundering, tax evasion, and terrorist financing. President Nayib Bukele announced a week ago that BTC will become a legal tender but the World Bank, the IMF and other authorities criticized the move.
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The World Bank refused a new request from El Salvador to assist in the country’s implementation of BTC as a legal tender.
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