El Salvador’s government could be planning to release a U.S. dollar stablecoin, investigative news outlet El Faroreported Friday. The currency would be issued by the central bank, pegged to the value of the U.S. dollar and backed by reserves of real U.S. dollars.
#ElSalvador | El Gobierno de Nayib Bukele planea introducir una nueva moneda nacional, una versión digital de los colones salvadoreños, según ha constatado El Faro en videos de negociaciones privadas entre el Gobierno e inversores extranjeros de #Bitcoin.https://t.co/zfn9XaL8L2
Videos of private meetings obtained by El Faro show the El Salvadoran president’s brothers, who are not part of the government but frequently advise the president, planning to launch a national U.S. dollar stablecoin by next year.
The cryptocurrency would be called the “Colón-Dollar,” a reference to the country's former national currency that was replaced with the U.S. dollar in 2001.
El Faro reported that a government spokesperson said the plans were scrapped—but went on to claim that the plans are still underway, quoting a “source familiar with the negotiations.”
Some meetings cited by El Faro happened after President Bukele announced in June that Bitcoin would become legal tender in the tiny Central American nation. Senior government officials, private contractors and external advisors attended, reported El Faro.
The brothers added that they would like all cryptocurrencies to become legal tender in El Salvador. “But for that to happen we need government infrastructure that is up to the task for what’s ahead,” said Bukele’s brother, Ibrajim, according to El Faro.
El Salvador became the first country in the world to make Bitcoin legal tender after President Bukele announced the plan last month at the Bitcoin 2021 conference in Miami.
But investment banks like JP Morgan, U.S. officials and even the World Bank have all expressed concerns over how the country’s Bitcoin law would work.
President Bukele is very popular in El Salvador, a poor and crime-ridden country. But he has been criticized for the way he has dealt with gang members, his attacks on the press and when he marched troops into parliament to pressure lawmakers.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
OpenAI said Monday it has secured an additional $40 billion in funding to support research and development, as the tech powerhouse looks to strengthen its lead in the artificial intelligence sector.
Japanese conglomerate SoftBank led the funding round, as well as contributions from other investors, including longtime partner Microsoft, OpenAI said in a blog post. Decrypt has reached out to learn more.
OpenAI Plans to Release ‘Open-Weight’ Model with Reasoning Capabilities
The announcement comes...
Donald Trump Jr. and Eric Trump have teamed up with Bitcoin mining heavyweight Hut 8 to launch American Bitcoin, a new industrial-scale mining firm that plans to become the “world’s largest and most efficient Bitcoin miner.”
Announced on March 31, the venture was born out of a strategic deal in which Bitcoin mining company Hut 8 contributed the majority of its mining hardware to American Data Centers Inc., a company backed by the Trump sons.
The firm was then rebranded as American Bitcoin—a majo...
Smoke from Nicaraguan cigars choked out the room as a heavy-set Bitcoin miner from the Deep South explained how the industry was expanding at an exponential rate.
"You have no idea," he said at this year's Mining Disrupt pre-party in Fort Lauderdale, Florida, before following up with the common Bitcoiner maxim—repeated by President Trump on the campaign trail—that you should never sell your stash.
Having been involved in the space since the early days, he recalled buying a Ferrari with orange c...