Possible El Salvador’s Stable Coin Is Under Discussion
Ever since I heard about the Bitcoin legal tender, I have been excited about cryptocurrency and how it’s slowly changing the world. From the reaction from different people around the world you can tell that the whole world is also excited about the news also. This was a signal of hope for the crypto community, but unfortunately the people of El Salvador think otherwise. So do other people like the world bank, US. Officials and JP Morgan.
Most of these Citizens am sure are concerned about the volatility of bitcoin and their business. Let’s say a trader makes $150 from selling its goods through out the day, then the next morning they wake up to a bitcoin worth $85, that’s a $65 loss at that moment because that trader will have to feed its family and invest on its business to keep the business going. From this point of view you can see the reason some of them don’t buy the idea of bitcoin being a legal tender. But the President has said it before that they are urged to use it not mandated to use it.
But I believe that this is because of their little education on bitcoin. Because bitcoin is a store of asset value currency, it’s not advised that daily traders should use them as a means to save their money because of the volatility uncertainty. I guess that’s one of the reasons the government is considering launching the country’s stable coin. Just as other stable coins, the country’s stable coin is expected to be pegged to the value of the U.S Dollar and also backed by it. It’s also expected to be issues by the country’s central bank.
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Some of the informations about the country’s stable coin was discussed on El Faro, which is an investigative news outlet. During the meeting discussion you could see the President’s brother who has no political position but as the brother offers him some advice.
It is assumed that the stable coin would be called “colon-dollar” which is coined from the country’s former currency before they adopted the U.S dollar in 2001.