The stable digital coin will be developed by the end of 2021. A dedicated team, that includes the brothers of the country’s president, Nayib Bukele, are working on its creation.
According to El Faro, El Salvador’s presidential administration has begun working on a project of its own stablecoin, which will be backed by the US dollar and called the Colon Dollar. According to the publication, the brothers of the President of El Salvador, Yusef and Ibrajim, are taking part in the development of the stablecoin. According to them, a stable digital coin will be created by the end of 2021.
A stablecoin is a digital coin whose value is tied to a specific physical asset. The first such digital currency, USDT from Tether, appeared in 2015. It is pegged to the value of the US dollar in a 1:1 ratio.
El Salvador recognized Bitcoin as the legal tender along with the US dollar. The decision was made by the Parliament of El Salvador on June 9. The law will come into force on September 7 2021.
According to the law, prices in El Salvador can be set in bitcoins, and tax payments can also be paid in this cryptocurrency. In addition, the exchange of bitcoins will not be subject to capital gains tax, while bitcoins will be exchanged for dollars at the market rate.
At the end of June, it was announced that every adult resident of the country who installs the state-developed Chivo crypto wallet application will receive $30 in bitcoins.
Since 1934-2000, the official currency of El Salvador was the Colon named after Christopher Columbus. However, since January 1, 2001, the US dollar was recognized as legal tender in the country, the rate of which to the Colon was set at 1 to 8.75. Thus, to date, the colons in El Salvador have been withdrawn from circulation, and the US dollar is the only currency in the country. Well, before Bitcoin.
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