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El Salvador’s National Bitcoin Office has dismissed reports that the state is pivoting to stablecoins, calling it “fake news,” and confirmed it has nary plans to motorboat oregon tally immoderate crypto oregon stablecoin wallets.
Key Takeaways
- ONBTC declared El Salvador has nary plans for crypto wallets aft selling Chivo Wallet to backstage owners.
- Coinbase Layer 2 Base web powers a caller $2 remittance app, challenging claims of a stablecoin pivot.
- El Salvador bought 30 BTC successful 30 days, expanding its nationalist reserves to 7,790 BTC contempt skepticism.
Government Denies Stablecoin Pivot
El Salvador has dismissed a Bloomberg study that the state is turning to stablecoins astir 5 years aft it became the archetypal federation to state bitcoin ineligible tender. In a statement shared via X, El Salvador’s National Bitcoin Office (ONBTC) clarified the government’s existent stance, declaring that it “has nary plans to motorboat oregon run immoderate bitcoin, crypto oregon stablecoin wallet.”
“With the caller merchantability of Chivo Wallet to a backstage operator, each authorities engagement has officially ended,” ONBTC stated.
The pushback from ONBTC comes straight connected the heels of a report alleging that El Salvador is softly pivoting distant from its flagship cryptocurrency initiative. Critics and manufacture analysts reason that bitcoin’s nonaccomplishment to execute wide regular adoption, combined with the country’s existing dollarized system and the expanding footprint of stablecoin elephantine Tether, has forced the authorities to rethink its strategy successful favour of fiat-backed integer assets.
In addition, the state-managed Chivo Wallet faced ongoing challenges implicit the years, including method issues, adoption friction, and nationalist skepticism regarding authorities involution successful fiscal integer infrastructure. By selling Chivo Wallet to a backstage operator, President Nayib Bukele’s medication stepped backmost from managing fiscal bundle directly, opting alternatively to let backstage endeavor to tally outgo infrastructure successful the country.
Adding substance to the speculation, Bukele’s medication has rolled retired a remittance app operating connected Base, Coinbase’s Layer-2 Ethereum blockchain network, which settles transactions successful stablecoins. Official statements item that the level offers identity-verified accounts, organization access, and a low-cost corridor allowing U.S. residents to nonstop funds to El Salvador for a level $2 interest careless of the transportation size.
The government’s pushback comes weeks aft President Nayib Bukele denied reports that El Salvador was ceding power of its strategical bitcoin reserve to a backstage operator. Bukele insisted that lone Chivo Wallet shares were transferred to a backstage company, not the nation’s bitcoin holdings.
Despite the controversy, El Salvador shows nary signs of slowing its accumulation strategy. Latest information amusement that the authorities acquired different 30 bitcoin successful the past 30 days, bringing the country’s sovereign holdings to 7,790 bitcoin—over $652 cardinal worthy astatine bitcoin’s caller terms beneath $84,000.
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