Crypto El Salvador making plans to solve Bitcoin Volatility

[Josemendez]

El Salvador has made the news in the past one month due to their adoption of bitcoin as a legal tender. Despite the fact that some citizens do not like the decision , El Salvador government are still making plans to promote the adoption of the coin.

News gathered from beincrypto shows that the government in other to give the citizens a stable coin for paying for services have ventured into creation of a stable coin that will be called Colón-Dollar. This was revealed to the public through a video footage by Ibrajim and Yusuf Bukele , brothers of the President who claim that they are representing the country.

Do you think that the development of this stable coin will give them the opportunity to solve bitcoin Volatility and also to give opportunity to people who are not comfortable with bitcoin to have an alternative.

 

[sincerem]

Its wise of the El-salvadoran government to come up with building their own stable coin called the Colón dollar. That will really help to reduce the volatility in BTC and enable its BTC investors in the country to utilize the stable coin to save their coin and preserve it from volatility from affecting and halting it down which will cost them panic. For me it's a perfect introduction made by the president 'Bukele and his honorary cabinets and brothers.

 

[Sherman198]

This is indeed great for the El-Salvadorian people as this will ease their doubts on digital currency. But I think this movements may disfavor Bitcoin, as it was considered for the adoption before. If the colon-Dollar, is successful and seen as a stable coin, as it solves the issue of volatility, I think other countries looking to adopt Bitcoin as a legal tender before may move towards creating and launching their own coin.

 

[Josemendez]

This is indeed great for the El-Salvadorian people as this will ease their doubts on digital currency. But I think this movements may disfavor Bitcoin, as it was considered for the adoption before. If the colon-Dollar, is successful and seen as a stable coin, as it solves the issue of volatility, I think other countries looking to adopt Bitcoin as a legal tender before may move towards creating and launching their own coin.

Actually the reason behind this is to enable the citizens to cut their loss during bearish period like the one we are experiencing now . So they thought that instead of allowing them to use USDT , it will be better if they can create their own stable coin and benefit from the fees as well. I think it is a smart move by the government of El Salvador.

 

[Yugocean]

El Salvador government can also issue a national cryptocurrency like China did, but the difference of Chinese band and Salvadorian legality on Bitcoin keeps them apart. The currency is going to be a stablecoin, it may or may not replace bitcoin in the future, I'll keep myself updated on the issue.

 

[Alexandoy]

If you have heard of the digital coin of China maybe El Salvador will create something similar. A crypto with a a stable value can never be achieved until the free market is dictating the price due to the law of supply and demand. The most that El Salvador can do is to have a stable coin which is a digital version of their fiat currency.

 

[sincerem]

This is indeed great for the El-Salvadorian people as this will ease their doubts on digital currency. But I think this movements may disfavor Bitcoin, as it was considered for the adoption before. If the colon-Dollar, is successful and seen as a stable coin, as it solves the issue of volatility, I think other countries looking to adopt Bitcoin as a legal tender before may move towards creating and launching their own coin.

Its good to have alternative, and that's just what El-salvador's government have implemented. And I applaud them for that cos they're doing everything humanly possible to get things going with their Cryptocurrency adoption to give opportunity to its beloved subjects to save their assets incase bearish run cause the coins dropping down they can make use if the stable coin to keep it away from doing down.

 

[Josemendez]

If you have heard of the digital coin of China maybe El Salvador will create something similar. A crypto with a a stable value can never be achieved until the free market is dictating the price due to the law of supply and demand. The most that El Salvador can do is to have a stable coin which is a digital version of their fiat currency.

Well , actually they can create a stable coin which is not a digital version of their Fiat currency. When El Salvador made plans to adopt bitcoin as a legal tender, they had the intention to avoid the Fiat currency ,so there is no need if creating CBDC. The stable coin is to be used to overcome the effect of bitcoin Volatility. Having theirs is better than using the existing ones like Usdt