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El Salvador government plans to launch its own Stablecoin

El Salvador government plans to launch its own Stablecoin

By the end of this year, the Nayib Bukele administration plans to create a national stablecoin cryptocurrency, which is dubbed “Colón-Dollar.” The action would reintroduce a fundamental aspect of monetary policy that was lost when the country accepted the US Dollar in 2001: the power to create national currency.

The president’s brothers and closest aides, Ibrajim and Yusef Bukele, negotiated the deployment strategy and schedule on behalf of the Salvadoran government, representing two years of effort commencing in November 2019. At least 50 people have participated in the negotiations, including top officials from the President’s Office’s Secretariat of Innovation, external consultants, and private contractors.

Bukele brothers discussed three fundamental steps: the adoption of the Bitcoin Law, the establishment of a government cryptocurrency wallet, and the declaration that the government will give each citizen $30 in bitcoin to encourage the usage of the wallet

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Bukele’s brother Ibrajim stated during a June 4 meeting with blockchain startups WhizGrid and Cardano,

What we want to do first is construct our government wallet and also stablecoin.

However, press secretary Ernesto Sanabria informed El Faro that the government is not planning any monetary reforms in addition to the Bitcoin Law, which was adopted on June 8.

Related: High ranking U.S Diplomat hopes IMF and El Salvador will settle Bitcoin terms

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

To oversee this emerging financial system in El Salvador, the administration is looking to create a superintendency called the El Salvador Blockchain Committee (ESBCC), The announcement comes just weeks after the Central American country’s government unanimously passed the president’s bitcoin bill, which makes the original cryptocurrency legal tender and requires all companies to accept it as payment for goods and services by September.

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