Bitcoin and cryptocurrencies are going strong in Latin America

The case of El Salvador has made school: from Cuba to Honduras, from Panama to Paraguay, many states are studying digital currencies and want to launch experiments and ad hoc laws

Nayib Bukele, president of El Salvador , in his official Twitter profile photo El Salvador, but not only: many Latin American countries are wondering about the advisability of regulating cryptocurrencies for daily use, in order to revitalize the circulation of value in the local economy depressed by various factors and streamlining trade with foreign countries, especially as regards emigrant remittances. This is the case of Honduras, where this item represents 20% of the gross domestic product, with 5.7 billion dollars sent from abroad to families in the small country overlooking the Caribbean Sea. In Tegucigalpa, the capital, the first "bitcoinera" appeared, an ATM machine installed by the consulting company Tgu, which will operate in a similar way to those planned in San Salvador and its surroundings.

The device will allow users to buy bitcoin and ethereum using the local currency (lempira), scanning your identity document and entering some contact details. According to the promoters, the new automated system will serve to educate new groups of users to cryptocurrencies and will offer greater security in exchange operations, avoiding them from delivering cash to third parties to be entrusted personally, as is mostly the case so far, implying big risks to due to widespread crime.

Cuba is also studying cryptocurrencies

The latest state to take a formal step towards cryptocurrencies was Cuba, where for some time the most advanced users have been receiving international payments by adopting vpn connections to disguise its geographical location. A resolution published in the official gazette states that from September 15 the central bank, a body founded by Che Guevara, will establish new rules to govern digital currencies and that commercial providers of related services will have to have a license to continue operations. The decision could help Cuba circumvent US sanctions with virtual currency that have made it more difficult to send and receive money between the two countries. In 2020, for example, the American remittance provider Western Union had to close all 400 agencies on the island, where it had been present for twenty years.

A bill is being studied in Panama , where a draft consisting of 31 articles should regulate various aspects of taxation, anti-money laundering, technical training, mining and banking business models. In particular, the possibility of using bitcoin and other crypto for daily purchases and to pay taxes to the state, the value of which must always be expressed in balboa or dollars, is evaluated. In South America, Paraguay is considering a law for mining, a flourishing activity in neighboring Argentina, where the debate has seen the opening of President Alberto Fernandez towards bitcoin or a digital currency, but also the closure and fears for financial stability by by the director of the central bank.

The cost of energy in Buenos Aires is low but high inflation has depreciated the currency: 100 pesos in 2019 would be worth the equivalent of 661 pesos today, according to government data reported by Cointelegraph. This has convinced many citizens to exploit mining to earn and link their economic resources to the trend of cryptocurrencies.


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Topics

Latin America Cryptocurrencies Finance Fintech globalData.fldTopic = "Latin America, Cryptocurrencies, Finance, Fintech "

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