Latin America, Tipping Point: The Region Flirts With & Rejects Cryptocurrencies

Typical Latin America. The region as a whole is having a love/hate relationship with cryptocurrencies. On the one hand, apparently, crypto remittances in Brazil, Argentina, and Venezuela grew 900% last year. On the other, Mexico and Peru’s Central Banks are actively working in their CBDCs. Which way will the scale tip? The jury’s still out on that one.

For the sake of organization, let’s go through Latin America country by county.

Latin America, T.P. – Brazil Is Clean And Binance Wants In

• According to Chainalysis, “Less than 1% of all cryptocurrencies that came to Brazil in 2021 were used in some criminal activity.” That’s quoting Portal Do Bitcoin’s journalist Saori Honorato. “Chainalysis estimates that Brazilians bought US$140 billion in cryptocurrencies last year, a number that places Brazil as the largest crypto market in Latin America and 11th in the world,” she also said via Twitter.
• Bitcoinist also reported that “Binance Plans To Acquire Brazilian Securities Brokerage.” “In a fast-developing market like Brazil, crypto can transform and facilitate people’s lives and as such we believe – in full collaboration with local authorities – that Binance has a lot to contribute in developing the community and ecosystem in Brazil,” CZ said.

Colombia, Peru, And Mexico Experiment With Crypto

• Candidates to Colombia’s Congress Edward Rodríguez and Didier Carrillo manifested their support for bitcoin and clear legislation. Sadly, elections were last week and neither of them made it. That’s Latin America for you.
• Even though it’s a fact that drug cartels prefer banks to crypto to launder their money, crypto entrepreneurs in Colombia and Mexico suffer the stigma of being suspected of money laundering. We’re so early, Latin America.
• Both Peru and Mexico officials said bitcoin is too volatile and that the respective Central Bank should work in their CBDC. These poor politicians still believe that bitcoin doesn’t have an intrinsic value even though the bitcoin network exists and works 24/ 7/ 365.

BTC price chart for 03/17/2022 on Gemini | Source: BTC/USD on TradingView.com

Venezuela, Between The Petro And A Hard Place

• Apparently, little by little, the Petro found its place in the Venezuelan economy. “The petro is used to pay for gasoline in verified establishments, among certain merchants that support its use and is widely accepted for passport procedures, purchase of air tickets and payment of taxes,” the report says. Still, Petro usage is limited.
• Bitcoinist reported, “Venezuelan Parliament Hit Local Firms With 20% Crypto Transaction Tax.” “The tax stipulates that any transactions or payments conducted in foreign currencies or cryptocurrencies without a limit quantity will be subject to a tax of up to 20%, depending on the nature of the transaction,” the article says.

Latin America, T.P. – Argentina Is On The Edge

• The country’s new deal with the FMI was worldwide news. However, did you know that it includes a clause that demands Argentina to discourage the bitcoin industry? That’s so evil. Especially considering that the country already gave the world the Muun Wallet and Decentraland.
• On the other hand, the Bitcoin Argentina NGU announced free introduction to DeFi talks in La Patagonia, one of the country’s farthest regions.
• Also, Banco Santander and a company called Agrotoken are developing a program for farmers to exchange soy, corn, and wheat for a token. Is this a good idea? According to the article, the farmers will also be able to get loans and buy equipment with the Agrotoken. Do they need a token for that? Is this necessary?

That’s the summary of Latin America’s recent crypto activity. If you need more, read our report on the controversy surrounding Cuba’s QvaPay. And that’s that. We did it. We managed to write a whole “Latin America, Tipping Point” without mentioning El Salvador… until then. Oops.

Featured Image: Latin America, Tipping Point logo | Charts by TradingView