September 19, 2021

El Salvador's authorities to issue their own stablecoin

The administration of the President of El Salvador has begun work on a project of its own stablecoin, which will backed by the US dollar and be calledColon Dollar, El Faro reports. According to the publication, brothers of the President of Salvador Nayib Bukele Yousef and Ibradim are taking part in the development of the stablecoin. According to them, the digital coin will be created by the end of 2021.

El Salvador recognized Bitcoin as the legal tender along with the US dollar. The corresponding decision was made by the Parliament of El Salvador on June 9. The law will come into force on September 7.

According to the law, prices in El Salvador caninstalled in bitcoins, it will also be possible to pay tax deductions in cryptocurrency. The bitcoin exchange will not be subject to capital gains tax, while bitcoins will be exchanged for dollars at the market rate.

In late June, it became known that every adult in the country who installs the state-developed Chivo crypto wallet application will receive $ 30 in bitcoins.

In 1934-2000, the official currency of El Salvadorwas named after Christopher Columbus of the columns. However, since January 1, 2001, the US dollar was recognized as legal tender in the country, the rate of which to the col was set at 1 to 8.75. To date, the columns in El Salvador have been withdrawn from circulation and the US dollar is the only currency in the country.