The El Salvador government has plans to launch its own stablecoin backed by the U.S. dollar, Latin American digital newspaper El Faro reported Friday night. A Salvadorian economist has hit out at President Nayib Bukele and his two younger brothers and his closest advisors.
There is a lot of discussion going on concerning a report published by the regional news outlet El Faro. The report claims that Bukele is secretly planning the release of a stablecoin and a crypto wallet. The El Faro report references videos that show the president’s brothers discussing the stablecoin dubbed “Colon-Dollar”. Salvador will introduce the stablecoin by the end of the year according to the report.
“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.
In this effort, the top government negotiators aren’t formal government officials but rather the President’s two brothers. In a series of meetings on May 27, June 4, and June 7, 2021, El Faro had obtained the footage. They present themselves as his advisors and indicate that Nayib Bukele has the final say.
According to the paper, the president’s brothers reportedly met with representatives from Cardano, WhizGrid, and Algorand at different times.
El Faro quoted a government spokesperson as stating that the plan was “discarded”. However, the newspaper, citing an undefined source, stated that the plan is still live.
Also Read: El Salvador Becomes The First Country To Adopt Bitcoin As Legal Tender After Passing A Law
Financial reporter Frances Coppola predicted the creation of a Salvadoran Stablecoin in a tweet she wrote on 9 June 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.
