According to regional reports, El Salvador’s current leadership is in the midst of developing a stablecoin backed by the U.S. dollar. Meanwhile, others believe the stablecoin idea was scrapped now that Nayib Bukele’s government chose to leverage bitcoin.
Some Say the Colón-Dollar Is Being Developed, Others Claim the Salvadoran Stablecoin Idea Was Scrapped
There’s lots of debate going on concerning a report published by the regional news outlet El Faro. The investigation claims the Salvadoran president Nayib Bukele and his regime plans to issue a stablecoin. The El Faro report references videos that show the president’s brothers discussing the stablecoin dubbed “Colón-Dollar.”
The report from El Faro does note a spokesperson from the Bukele regime says the stablecoin plans were scrapped, but “sources familiar” with the matter told El Faro they disagree. This is because it has been said that meetings about the Colón-Dollar are still continuing and happened after Nayib Bukele passed the new bitcoin tender law.
“El Faro has a copy of several videos that add up to more than two hours of virtual meetings, in which different negotiations appear with delegates from at least five technology companies and where the Bukele brothers are protagonists,” the reporters Sergio Arauz , Nelson Rauda and Roman Gressier wrote.
“El Faro also obtained documents in which the action plan proposed by foreign companies to leverage the implementation of a new financial system and the new currency is registered,” the report adds.
#efNEWSLETTER📰 The Bukele administration has been planning to launch a national stablecoin cryptocurrency, which it was calling “Colón-Dollar,” by the end of this year. https://t.co/Gy54hmHXEI
— El Faro (@_elfaro_) July 17, 2021
In a discussion on Twitter, the owner of the Twitter account tied to the bustling Bitcoin Beach community at Playa El Zonte believes the stablecoin idea was scrapped. The statement was in response to an individual from El Salvador that said the stablecoin idea reminded them of the petro from Venezuela.
“From my understanding, they were considering going this route (which would have been very concerning) but chose to embrace Bitcoin instead,” the Twitter account @bitcoinbeach tweeted. “From what I am hearing this is no longer a consideration. They gave up control to instead embrace an open protocol,” the account added.
However, another individual disagreed with the Bitcoin Beach account and believes otherwise. The person said that “several” of his “Salvadoran correspondents” corroborated the El Faro article, but he could not “vouch for their accuracy.”
Colón-Dollar Could be Integrated With Chivo, Alleged Meetings With Blockchain Teams
The El Faro source notes that the stablecoin called the Colón-Dollar may be introduced by the end of the year. Financial reporter Frances Coppola believes she predicted the creation of a Salvadoran stablecoin in a tweet she wrote on June 9, 2021.
“I reckon that’s what he will do. It won’t be backed with actual USD, it will be backed with a ‘USD-equivalent” stablecoin,’” Coppola said at the time.
In addition to people disliking the idea that Nayib Bukele’s regime may be creating a stablecoin, bitcoiners, as well as citizens from El Salvador, have taken issue with Bukele’s recent vaccine mandates.
A great number of Salvadorans said they were displeased with Bukele’s vaccine mandates and said the Salvadoran “population does not want” these Covid-19 vaccines. One individual tweeted to Bukele and said: “The Bitcoin community does not support you in this.”
Furthermore, the regional source that claims the stablecoin creation is still a go noted that Bukele’s brothers were in charge of the concept, and that the Colón-Dollar would be integrated with the government wallet dubbed “Chivo.”
In addition to the video meetings, the sources also detailed that members of Bukele’s regime met with blockchain teams from Whizgrid, Alogrand, and Cardano.
What do you think about El Salvador reportedly building a stablecoin backed by the U.S. dollar? Do you think the concept was scrapped after the country adopted bitcoin? Let us know what you think about this subject in the comments below.
