The company launched Alloy, a stablecoin backed by a gold-linked digital asset. It was designed by a Salvadoran subsidiary of the company.
The recent reform of the Digital Assets Emissions Act provides for a change to the definition of stablecoin, i.e. digital assets that are tied to a stable currency, such as the dollar or the euro. This seems to be a change made to the measure of Tether, a sister company of Bitfinex, whose managers have had a direct stake in digital asset legislation in the country.
The previous version envisaged a similar concept: stablecoin could only be covered in a currency, such as the dollar. However, they are now allowed to do so in any “low volatility” asset and represent a safe investment, such as gold, for example.
Coincidentally, Tether’s company is introducing a stable gold-backed currency tied to the US dollar. The new coin is called Alloy (aUSDT) and can be coined on the new Alloy by Tether platform.
Tether is a company captained by Italians Paolo Ardoino and Giancarlo Devasini, the same ones behind Bitfinex, a company with great influence on the management of Nayib Bukele.
According to the company, Alloy will be overcived by XAUT, the gold-linked token that provides physical gold property, but will be linked to the US dollar. By definition, the new token is a synthetic dollar, designed to mimic the value and functionality of the USD without being directly supported by it,” journalist Derek Andersen wrote in the Cointelegraph media.
The currency was developed by Tether’s subsidiaries: Moon Gold and Moon Gold El Salvador, which already has a license as a digital asset service provider authorized by the Salvadoran authorities. It was registered on March 22, 2022.
CNAD will monopolize the issue
Another relevant aspect of the changes recently approved to the Digital Assets Emissions Act is that both the Central Reserve Bank (BCR) and the Superintendency of the Financial System (SSF) have been relieved in their role as registrar (the first) and Comptroller (the second) on the subject of Bitcoin service providers. Now, that role will be represented by the National Commission on Digital Assets (CNAD), which moves to monopolize the issue.
According to experts, the modification to the regulations puts the entire ecosystem in the hands of the Executive. Indeed, the three members of the CNAD board of directors are elected by the President of the Republic, the Ministry of Economy and the Ministry of Trade and Investment.
This article has been translated after first appearing in El Salvador