a “reflection token” is created

The Salvadoran government is preparing another step in the crypto sector – about nine months after officially adopting Bitcoin (BTC) as a legal tender.

According to ElSalvador.com, the website of the newspaper El Diario de Hoy, the state is not affected by the current “difficult scenario for digital assets” and has entered into a partnership with the Canadian company Astro babies to launch a new cryptocurrency called the Salvadoran Crypto Initiative (SCI).

Nayib Bukele. Source: PresidenciaSV / Twitter

So far, Astro Babies has mainly focused on trading non-fungible tokens (NFTs). The article adds that Astro Babies launched a cryptocurrency-powered virtual casino in El Salvador last week.

The co-founders of the said company, Mark Al Radan and the Canadian Wes Karniejreportedly said the token has already been developed, adding that “smart contracts are already ready.”

The token’s website is also ready to go live, they added, and discussions are underway with a number of “ministers involved” in the project.

One of these ministers is a key ally of President Nayib Bukele in everything related to cryptocurrency: Monica Taherresponsible for international technological and economic affairs at Ministry of Trade and Investment.

Mónica Taher said the project would be supported by Ministry of Educationthat Ministry of Healththat Ministry of Culturethat Ministry of Housing andNational Sports Institute (IF).

Mónica Taher, Head of International Technology and Economic Affairs.
Source: video recording, adoption of Bitcoin / YouTube

Stakeholders said the token would be a “reflection token” (a reward token). Typically, these assets reward their holders with a percentage of each transaction. Transactions on a token network are subject to fees – a form of tax – which are shared and returned to society.

The company, reports the media, “has assured that 30% of the profits generated by the purchase and sale of these tokens will go to public funds”, including those from the aforementioned ministries and INDES.

According to Taher, Astro Babies has been in negotiations with various government agencies for several weeks but has not yet obtained the approval of the Ministry of Finance for the launch. Legislative changes may also be necessary: ​​Politicians will have to give the green light to the creation of a trust that will officially receive the “SCI commissions.”

Taher said there is no way to know how much the government can expect to raise from this initiative, as “it will depend on how many people acquire SCI tokens.”

She added:

“The funds will be categorized as non-refundable cooperation (donations) and will be distributed equally among the five organizations.”

Karniej reportedly explained that the token would be “fully decentralized” and investors could access it through Astro Baby’s trading platform.

Al Radan said SCI would be backed by “wrapped bitcoin” (WBTC) – meaning that any profits that go into the treasury will come in the form of cryptocurrencies, not USD.

The media quoted the Salvadoran economist Luis memberwho discredited the project and stated:

“Now is a bad time to create a Salvadoran token. It’s a bad time to think about it at all, as the government has not even been able to issue its bitcoin bonds due to lack of interest in the market.”

Memberño added that the new SCI token “could be designed to work” on the bitcoin app and wallet. Chivostate-run, but pointed out that “Salvadorans have lost faith in the platform” because of the “many problems” that have plagued the app “since its launch.”

Bukele, for his part, seeks to reassure bitcoin investors in all guises – including perhaps his government and domestic bitcoiners – with a tweet calls for “patience”.

Bukele wrote in both Spanish and English:

“I can see that some people are worried or worried about the market price of Bitcoin. My advice: stop looking at the chart and enjoy life. If you have invested in BTC, your investment is safe and its value will increase enormously. after the bear market. Patience is the key. “

ElSalvador.com also reported that many companies across the country removed “Bitcoin Accepted Here” signs in recent days, with fears accelerating as the price of BTC fell to below $ 20,000 over the weekend.

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