El Salvador's presidential administration has started developing its own stablecoin, which will be backed by the US dollar and will receive the name Colón-Dólar, El Faro has reported.
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According to the publication, President Salvador's brothers, Nayib Bukele, Ibrajim and Yusef, are taking part in the development of the stablecoin. According to them, the stablecoin will be launched by the end of 2021.
In June, El Salvador recognized Bitcoin as legal tender alongside the US dollar. The law will come into force on September 7.
From then on, prices in El Salvador will be able to be set in Bitcoins, in addition, it will also be possible to pay tax deductions in cryptocurrencies. The exchange of Bitcoins will not be subject to capital gains tax, while the exchange of bitcoins for dollars will be made at the market price.
At the end of June it was known each adult resident of the country who installs the cryptocurrency wallet developed by the state Chivo will receive $30 in Bitcoins as a reward.