According to El Faro news agency, it was reported last Friday that the government of El Salvador may plan to launch a stable digital currency backed by the US dollar.
The currency will be issued by the Central Bank of El Salvador, and will be pegged to the value of the US dollar and to a reserve of US dollars.
Videos of private meetings obtained by “El Faro” show the brothers of the president of El Salvador, who are not part of the government but frequently advise the president, and plan to launch a stable currency in US dollars by next year.
The stable cryptocurrency will be called the “colon dollar,” in reference to the country’s former national currency which was replaced by the US dollar in 2001.
The same newspaper reported that a government spokesman said that plans to develop this currency have been cancelled.
But the facts changed after some of the meetings cited by El Faro took place after the president announced in June that bitcoin would become legal tender in the small Central American country.
The newspaper reported that senior government officials, private contractors and external advisors attended.
The brothers added that they would like all cryptocurrencies to become legal tender in El Salvador, and the newspaper quoted the president’s brother, Bukele, as saying:
For that to happen we need a government infrastructure that is up to the task ahead.
El Salvador has become the first country in the world to offer legal tender for bitcoin after President Najib Bukele announced the plan last month at the 2021 Bitcoin Conference in Miami.
But investment banks such as JPMorgan, US officials and even the World Bank have all expressed concerns about how the country’s bitcoin law will work.
President Bukele is very popular in El Salvador, which is a poor, crime-ridden country.
The Salvadoran president has been criticized for the way he handled party members, his attacks on the press, and when he pushed troops into Parliament to pressure lawmakers to agree and pass the Bitcoin Act.