Latam Crypto Report #10: Crypto-friendly Milei to become Argentina's next president
Also: Credix raises $60 million, LABITCONF wraps up in Buenos Aires; Tether to invest US$500 million into mining bitcoin in Latam
ยกHola a todos! ๐
Welcome to the latest edition of the Latam Crypto Report.
We hope our U.S.-based readers are gearing up for a relaxing and fun Thanksgiving break. ๐ฆ In the meantime, weโre serving up some piping hot crypto news from all over the Latin America region for you to snack on.
For those of you new to this newsletter, let me quickly introduce myself. Iโm Kristin Majcher, a freelance journalist based in Bogotรก, Colombia. Youโre reading the ๐ Latam Crypto Report, a sister newsletter to Aaron Stanleyโs ๐ง๐ทBrazil Crypto Report.
Feel free to follow me on Twitter and LinkedIn and share any tips about news we should consider.
This week weโll dive into the surprising news that the crypto-friendly, libertarian economist Javier Milei won Argentinaโs presidential elections, funding news from Credix and highlights from the 11th edition of the LABITCONF conference.
Then, weโll review our usual rundown of news items by country.
As always, thanks for reading. If you found this content to be helpful, please tell your friends and be sure to subscribe.๐
Crypto-friendly, libertarian Javier Milei to become Argentinaโs next president
The crypto community is downright fascinated with Argentinaโs incoming right-wing president Javier Milei, who surprised the country last weekend when he won a runoff election against Economy Minister Sergio Massa.
While Milei has expressed enthusiasm for crypto and radical ideas such as dollarizing the economy and eliminating the countryโs central bank, itโs important to remember that weโre still waiting to see how these plans might unfold after he takes office on December 10. Furthermore, Milei has not shared any plans to make bitcoin legal tender.
While itโs tempting to compare Milei and El Salvadorโs President Nayib Bukele because they both support bitcoin, one must remember that Argentina and tiny El Salvador are different countries. While Bukele was able to quickly push through reforms like making bitcoin legal tender in El Salvador in September 2021, Reuters points out that Mileiโs coalition La Libertad Avanza has limited seats in Congress and would need to solidify key alliances before pushing through his reforms.
What we know for sure is that all eyes will be on Milei to see if he can tamp down inflation, which is running at 143% according to Reuters. Argentines are also keeping a close watch on the Argentine peso-U.S. dollar exchange rate, the Associated Press reported.
Itโs also worth noting that an array of local news outlets including Clarรญn, Perfรญl and รmbito reported last year that Milei was sued for promoting an alleged Ponzi scheme after he posted about CoinX on Instagram. English-speaking outlets including Decrypt and Protos also picked up the news.
Regardless of the challenges facing Milei, crypto-focused outlets have provided no shortage of takes in the past few days about how the industry is receiving the news and what his presidential tenure could mean for digital assets.
For example, Decrypt pointed out that while high-profile crypto figures are supporting Milei for his economic policies, the incoming president has also made controversial remarks regarding human rights.
The price of Bitcoin rose on the news of Mileiโs win, up nearly 3% past $37,000 after the news. (CoinDesk, The Block, Fortune, Clarรญn)
A conversation is playing out about whether Mileiโs victory might spur increased crypto adoption in the region. (City A.M., The Block, Forbes)
The usually bullish Bitcoin Magazine discussed why the dollarization of Argentinaโs economy would be one of the most anti-bitcoin measures Milei could enact.
Noelle Acheson argued in a CoinDesk op-ed that bitcoiners cheering on Mileiโs election are โgetting it all wrong.โ
Credix secures $60 million credit facility for Latam expansion
The Solana-based decentralized credit marketplace Credix has raised $60 million to expand its focus on providing loans to farmers and small and medium-sized enterprises in Latin America, the company announced on November 14.
Credix said it had secured a โ$60 million credit facility from a leading, $3 billion alternative asset manager.โ
Credix added that the funding โaims to bring the firmโs assets under management to over $100 million.โ
โCredixโs cutting-edge technology platform is now facilitating access to credit opportunities across Latin America for this multi-billion dollar credit fund,โ Credix CEO Thomas Bohner stated. โThis strategic collaboration empowers Credix to not only expand its operational footprint but also contribute to generating risk-adjusted returns while fostering a positive social impact.โ
Check out Aaronโs recent interview with Thomas to learn more about Credixโs plans.
(Benzinga, LatamList, LinkedIn)
LABITCONF wraps up 11th edition in Buenos Aires
The 11th edition of the LABITCONF conference in Buenos Aires brought together crypto experts from around the region on November 10 and 11.
Technology, regulation, transparency and security were some main themes at this yearโs conference, รmbito reported, with economists, developers and entrepreneurs joining crypto experts. The local news outlet chatted with several attendees, including executives from blockchain-based streaming service Flixxo, Ripio Select and BingX.
Criptala co-founder Juan Becerra told Cointelegraph that regulatory stability โemerges as a fundamental pillar in the panorama of the crypto industryโ and โplays a crucial role in formulating action plans and strategies for the future.โ
OKX President Hong Fang highlighted security as a main priority for the Web3 company during a speech at the event. The crypto exchange also hopes to physically expand into Argentina, El Cronista reported.
One of the most widely-covered talks at LABITCONF was a panel featuring Argentine economic experts Diana Mondino, Alfredo Roisenzvit, Agustรญn Etchebarne and Fausto Spotorno, Infobae reported.
๐ย Latin America Crypto News Rundown
Hereโs where we break down Latin America crypto headlines from the past few weeks, organized by country and region. If you donโt see a country listed, itโs simply due to the news flow during a particular week.
Regional News
Tether plans to invest about $500 million in bitcoin mining-related projects over the next six months, soon-to-be CEO Paolo Ardoino told Bloomberg. It is building mining sites in Uruguay, Paraguay and El Salvador with a capacity of between 40 and 70 megawatts each, Ardoino said in the interview. (Bloomberg)
BeInCrypto examined the challenges Latin America-based crypto and Web3 startups face, especially considering that startup funding in the region is down 83% this year compared with 2022. (BeInCrypto)
Tax and consulting firm RSM Global examines stablecoins in Latin America, highlighting their appeal for businesses and risks. (RSM Global).
Bakkt and stock trading platform Hapi are expanding their crypto trading offerings in Mexico and Argentina, with a Brazil launch planned later this year. (Yahoo! Finance, Bakkt)
Karen Duque, Bitsoโs public policy lead for Colombia and Brazil, announced she moved on from her post at the company. (LinkedIn)
Fintech startup Beetransfer formed a strategic partnership with Bitso to expand in Latin America, focusing on providing services to freelancers and digital nomads. (Contxto)
South America
๐ฆ๐ท Argentina
Crypto asset manager Grayscale wrote in a recent analysis that โthe election of Javier Milei as Argentina's president marks a pivotal moment for Bitcoin in the country.โ (Grayscale, BeInCrypto)
Nonprofit ONG Bitcoin Argentina is optimistic about Milei, but says it wonโt give his administration a โblank check.โ (A24, BeInCrypto)
ONG Bitcoin Argentina proposed a legal framework for bitcoin during LABITCONF. (CriptoNoticias, Cointelegraph)
Criptonoticias summarizes what Milei has said so far about crypto. (Criptonoticias)
Peter McCormack, host of the What Bitcoin Did podcast, released a documentary film exploring Argentinaโs inflation crisis and cryptocurrency adoption.
๐จ๐ด Colombia
Details emerged about how Colombiaโs national prosecutorโs office caught six people who defrauded more than 120,000 investors for more than 130 billion COP (about $32 million) by promoting a supposed cryptocurrency called Daily Cop. Several influencers shared information about the scam on social media. (El Tiempo, Infobae, SoyHodlr, El Colombiano)
Colombiaโs proposed regulatory framework for crypto assets is advancing, with Finance Minister Ricardo Bonilla highlighting some recent progress on the initiative. (Soy Hodler)
Colombia is also working to implement a digital peso, Bonilla said in late October. (Soy Hodler)
Medellรญn is home to the countryโs first NFT nightclub, with people who previously purchased NFTs from a collection getting special benefits. (BeInCrypto)
๐ต๐พParaguay
Sazmining opened its 100% renewable energy facility in Paraguay in late October. The company earns a 15% commission for operating customersโ Bitcoin mining rigs, Decrypt reported. The hydroelectric Itaipu Dam on the Paraguay-Brazil border is powering the operation. (Decrypt, Portal do Bitcoin)
A few weeks later, Marathon Digital Holdings announced that it is also planning to put a 27-megawatt Bitcoin mining facility in Paraguay, which will also be powered by the dam. The U.S. company is partnering with Penguin Infrastructure Holding on the project. (Marathon Digital Holdings, Hydro Review, Blockworks)
๐ต๐ชPeru
Peru passed a regulation prohibiting Bitcoin and other cryptocurrencies from being used to pay for remote games and sports betting. (BeInCrypto, CriptoNoticias)
๐บ๐พUruguay
Spanish company Prosegur and Minos Global will provide crypto custody, buying and selling services in Uruguay for customers of fintech Midinero. (Yahoo! Finance, Expansiรณn)
๐ป๐ช Venezuela
BeInCrypto examines the factors leading up to the decline of Venezuelaโs much-hyped Petro cryptocurrency. (BeInCrypto)
Central America & Mexico
๐ธ๐ป El Salvador
El Salvadorโs portfolio is running losses of about $16 million based on what we know about the countryโs purchases and current bitcoin prices (CoinDesk, InfoMoney)
Athena and Genesis Coin are enabling Athena-branded bitcoin ATMs in Latin America and El Salvadorโs Chivo ATMs with the Lightning Network. It plans to have 100 of these ATMs operational with Lightning by the end of the year. (Athena Bitcoin, Cointelegraph, Decrypt)
According to El Salvadorโs Vice President Felix Ulloa, bitcoin has helped the countryโs โrebirth.โ (Forbes, Livecoins, Exame)
๐จ๐ทCosta Rica
Costa Rica recently held an event called Blockchain Jungle 2023, which featured speakers including Nick Szabo and JAN3โs Samson Mow. (Cripto Tendencia, La Naciรณn Costa Rica)
๐ฒ๐ฝ Mexico
Etherfuse is making its โStablebondโ tokenized bond offering available to retail investors in Mexico, the second-largest bond market in Latin America. It made the announcement at the Solana Breakpoint Conference in Amsterdam. (CoinDesk)
Bitso has named Felipe Vallejo as the new head of its Mexico operation starting in January. Daniel Vogel will continue as CEO of Bitso globally. (Forbes Mexico, El Economista, Expansiรณn)