El Salvador’s president’s brothers are allegedly talking with overseas investors to establish a new cryptocurrency. The brothers indicated that the digital asset, like the Bitcoin Law, will be implemented at the end of the year.
On Friday, El Faro, a Latin American digital daily, revealed that El Salvador is considering releasing a cryptocurrency. According to the article, the initiative is being led by the brothers of El Salvador President Nayib Bukele. Ibrajim and Yusef Bukele, who are claimed to be the president’s representatives, have been meeting with international businessmen. The cryptocurrency is a stablecoin known as the ‘Colon dollar.’
Concerns have been raised regarding the country’s proposed acceptance of Bitcoin as a legal currency. According to CNF, JPMorgan is one of several organizations that have questioned the decision’s legitimacy. According to the investment bank, Bitcoin is likely to fail as a means of exchange due to its illiquidity and the limited nature of Bitcoin volume.
Regardless, the country is moving forward, and the law is scheduled to go into force in September. El Salvador will be the first country to declare Bitcoin legal tender, thanks to a vibrant, youthful, and inventive president. When the law goes into full effect in September, every Salvadorian will be legally obligated to accept Bitcoin as payment for products and services delivered.
However, the president is most likely aiming to supplement Bitcoin with a national cryptocurrency. According to the publication, people participating in the initiative have met with officials from Cardano, Algorand, and WhizGrid on various occasions to do this. The publication also sought responses from a government spokeswoman, who denied the story, claiming that the proposal had been “discarded.”
El Salvador will be the second Latin American government to issue a cryptocurrency. Venezuelan President Nicolas Maduro introduced the Petro, the country’s native token, in 2017. The cryptocurrency is meant to be backed by the country’s mineral and oil reserves. Furthermore, the administration intended to utilize it to assist the country to avoid US sanctions. Unfortunately, the initiative has mostly failed to owe to weak governance.
Weiss Cryptocurrency Ratings examined the Petro Whitepaper and discovered that there was no mechanism for determining the Petro price based on oil or minerals, and as a result, the currency was branded a “worthless token.”