Latam Crypto Report #21: What El Salvador's IMF Loan Deal Means for Bitcoin

Also: A new bitcoin documentary is now streaming; Bitso releases new payments report

Hola a todos! 👋

Welcome back to the 🌎Latam Crypto Report, where contributor Kristin Majcher compiles and analyzes the biggest crypto stories in the region.

We hope you had a relaxing holiday season 🎁 and took some time to unwind before another fast-paced year. We’ll cover the biggest news in December 2024 and early January.

In this issue, we’ll take a look at:

• What El Salvador’s loan agreement with the International Monetary Fund (IMF) means for the country’s bitcoin strategy

• A new Spanish-language documentary about bitcoin in Latin America

• A new report from Bitso about cross-border payments

Before we begin, we’d like to extend a big thanks to all of our subscribers who read 🇧🇷Brazil Crypto Report and 🌎Latam Crypto Report and have allowed us to continue this project for yet another year. We have big things in store for 2025, and it’s all because you continue to support us and share our content.

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Now, let’s get into the first report of the year! If you’re not subscribed already, please smash hit the button below!👇

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El Salvador Limits Bitcoin Activities for IMF Deal

In a surprising move, El Salvador ended 2024 by agreeing to limit certain aspects of its bitcoin strategy in exchange for a $1.4 billion loan from the International Monetary Fund (IMF). The package totals more than $3.5 billion when considering additional financing from several other sources.

However, the Central American country is continuing to purchase bitcoin, making several large purchases in the past few weeks.

A December 18 IMF press release stated:

“Legal reforms will make acceptance of Bitcoin by the private sector voluntary. For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined.”

• As a part of the deal, El Salvador will receive taxes only in U.S. dollars. The country will also wind down its involvement in the Chivo bitcoin wallet it launched when it made bitcoin legal tender in 2021.

• The IMF added that “transparency, regulation, and supervision of digital assets will be enhanced to safeguard financial stability, consumer and investor protection, and financial integrity.”

• Despite these conditions, El Salvador’s National Bitcoin Office Director Stacy Herbert said the country will continue to purchase bitcoin for its reserves. She said El Salvador will also move forward with developing other initiatives, such as education programs and bitcoin capital markets.

• Since Herbert said El Salvador could buy bitcoin at an “accelerated pace” on December 19, the country’s records show it has made three purchases for 11 bitcoin alongside its typical purchase of one per day.

El Salvador’s bitcoin adoption is already limited, so the IMF’s conditions might not significantly affect many residents in the short term. The most visible change will likely be Chivo shutting down or changing hands, or businesses choosing to not accept bitcoin.

We’ll be keeping a close eye on El Salvador’s bitcoin strategy in the new year.

(The Block, Reuters, Fortune, The Wall Street Journal, The Financial Times, CoinDesk, BeInCrypto, CriptoFacil, Portal do Bitcoin, Exame, Livecoins)

Revolución Bitcoin: Now Streaming

If you’re finding it a bit hard to get back into the swing of things after the holidays, never fear — a new Spanish-language documentary called Revolución Bitcoin is the perfect way to ease back into work and still sneak in some more TV time.

While the documentary premiered in Madrid in June 2024, it’s now available to stream for free on YouTube. With footage from Spain, El Salvador, Mexico, Argentina and Colombia, the 80-minute film with English subtitles provides an overview of the factors driving bitcoin adoption in the region.

(CriptoNoticias, CoinTelegraph)

Bitso Business Transactions Top $12 Billion in 2024

Bitso’s B2B arm, Bitso Business, facilitated more than $12 billion in transactions in 2024. Of that volume, $6.5 billion came from US-Mexico remittances. The company’s blockchain-based platform supports cross-border transactions for stablecoin and fiat settlements.

Along with releasing its results, Bitso Business also teamed up with Payments and Commerce Market Intelligence (PCMI) to release a new report focused on cross-border transactions.

Some interesting takeaways from the report include:

• Revenues for Latin America’s B2B cross-border payments market are estimated to be between $25 billion and $133 billion.

• The region’s B2B cross-border market is valued at $600 billion in transaction volumes, which could grow to $1.37 trillion by 2030.

• Bitso Business is responsible for moving more than 10% of transfer volume between the US and Mexico.

• Inbound remittances to Latin America and the Caribbean reached $156 billion in 2023.

(Bitso Business Cross-Border Report, BeInCrypto, CoinTelegraph, Computer Weekly)

🗞 Latin America Crypto News Rundown

Here’s where we break down Latin America crypto headlines from the past few weeks, organized by country and region. If you don’t see a country listed, it’s simply due to the news flow during a particular week.

Regional News

• Strike enabled USDT deposits and withdrawals for clients in Argentina, Brazil and El Salvador, as well as several other countries outside the region. (BeInCrypto, Strike)

• Bitso predicts that AI will play more of a role in crypto in 2025, and expects Latin American countries will adopt clearer regulations in the new year. (Milenio)

• Hyla Fund Management will introduce a $30 million fund focused on Latin America’s crypto sector, CoinDesk reported. (CoinDesk)

• CriptoNoticias examines what role crypto could play in four upcoming Latin American elections. (CriptoNoticias)

• Gaming is a growing use case for crypto payments, Statista data revealed. (BeInCrypto)

• Canadian fintech Nuvei launched a blockchain-based payment system for Latin American merchants, which it will implement through partnerships with Rain, BitGo and Visa. (Nuvei, CoinTelegraph, PYMNTS, Finance Magnates)

• Bitcoin Magazine highlighted women in Latin America and several other regions who are making their mark on the crypto industry. (Bitcoin Magazine)

• Crypto.com’s Visa cards are now available in Latin America. (Crypto.com)

• Cointelegraph highlighted Latin America crypto adoption as one of three major developments in 2024. (Cointelegraph)

• Chainalysis delved into the factors behind Latin America being the second fastest-growing crypto market globally. (BeInCrypto)

• Iupana analyzed six major Latin American banks exploring cryptocurrencies. (Iupana)

• Latam Fintech Hub examined the impact of cryptocurrencies in Latin America in 2024 and what the future holds in its latest panorama report. (Latam Fintech Hub)

• After a year of crackdowns, what can crypto miners in Venezuela and Paraguay expect in 2025? CriptoNoticias takes a look at the sector. (CriptoNoticias)

• Forbes Colombia provided a snapshot of the factors that drove different Latin American countries to adopt crypto last year. (Forbes Colombia)

• Ripio’s LaChain is now part of ZKsync’s Elastic Network. (iProUP, Ripio via LinkedIn)

• CriptoNoticias looks at three lessons Latin America has learned from crypto. (CriptoNoticias)

South America

🇦🇷 Argentina

• Argentina’s National Securities Commission (CNV for its Spanish acronym) approved Argentine Certificates of Deposit (CEDEARS) that allow crypto-related exchange-traded fund (ETF) investments for the first time. (Argentine Government, Livecoins, Cointelegraph, Ámbito)

• An Argentine senator was detained in Paraguay with more than $200,000 in undeclared cash. (BeInCrypto, Buenos Aires Times, Buenos Aires Herald, CNN Argentina)

• Satoshi Tango and Argentina’s Depay have partnered to offer crypto payments through QR codes in Argentina and Brazil. (Ámbito, Depay on X)

• Fintechs have provided about 6.4 million loans in Argentina. (Cointelegraph, Forbes Argentina, Infobae)

• Argentina’s security ministry has expanded resources to monitor and fight crypto scams and other cybercrimes. (BeInCrypto, Infobae, iProUP)

• KIP Protocol joined the City of Buenos Aires’ blockchain committee. (BeInCrypto)

• Banco Entre Ríos announced an alliance with Agrotoken. (BeInCrypto, Banco Entre Rios on LinkedIn)

• Argentine authorities ordered Tether to freeze about $3.5 million in USDT as part of an investigation into the RainbowEx scam. (Livecoins, Bitcoin.com, BeInCrypto)

• ONG Bitcoin Argentina is asking the country’s central bank to find solutions so that freelancers can deposit and liquidate crypto via financial institutions. (Infobae, Portal do Bitcoin, iProUP)

• A new resolution moves to update classifications and codes for economic activities including crypto asset management. (Argentine Government, Livecoins)

• Argentina’s President Javier Milei recently marked his first year in office. Here’s what that meant for crypto. (InfoMoney, BeInCrypto, iProUP)

• Regulators in Argentina and El Salvador have signed a “collaboration and mutual training agreement” aimed at strengthening the region’s digital asset industry, the head of El Salvador’s digital assets commission said in a LinkedIn post. (Juan Carlos Reyes via LinkedIn, Cointelegraph, Argentina Government, iProUp)

🇧🇴 Bolivia

• Neobank Meru launched its blockchain wallet in Bolivia, which will be able to connect with Visa, Mastercard and MoneyGram. (El Deber, BeInCrypto)

• Lawyers have proposed a law to Bolivia’s Senate that aims to recognize Tether (USDT) as a reference index in contracts. (BeInCrypto)

🇨🇱 Chile

• Authorities in Antofagasta issued an alert about criminal organizations increasingly using crypto. (BioBioChile, BeInCrypto, CriptoNoticias)

• Chilean congresswoman Gael Yeomans has proposed creating a group of lawmakers focused on developing crypto legislation. (BeInCrypto, La República)

🇨🇴 Colombia

• “People in Colombia used cryptocurrencies more often than they did in Brazil or other Latin American nations to buy more coins,” a Statista study showed. (Statista)

🇪🇨 Ecuador

• President Daniel Noboa issued a new anti-money laundering law by decree in December, prompting experts to weigh in about what the measure could mean for the crypto sector. However, the Constitutional Court challenged the decree, provisionally suspending the law from taking effect until it issues a ruling. (Ecuador Official Registry, BeInCrypto, Primicias, EFE, Latin American Post, El Universo)

🇵🇾 Paraguay

• Cardano teamed up with Paraguayan startup Atómico3, which specializes in tokenizing lithium reserves. (BeInCrypto, Soy Hodler, Ámbito)

🇵🇪 Peru

• Congressman Jorge Zeballos has proposed using blockchain technology so that Peruvians living abroad can cast their votes electronically. (BeInCrypto)

🇸🇷 Suriname

• Forbes explored Suriname’s circular bitcoin economies. (Forbes)

🇺🇾Uruguay

• Ámbito highlighted the individuals propelling Uruguay’s crypto community. (Ámbito)

🇻🇪 Venezuela

• El País documented how Venezuelans are using cryptocurrencies, which operate in a “gray market.” (El País)

Central America, Mexico & Caribbean

🇨🇷 Costa Rica

• While Costa Rica’s government is taking note of crypto projects developing within its borders, CoinDesk found that the country is taking a “hands-off” approach. (CoinDesk)

🇩🇴 Dominican Republic

• The Dominican Republic’s Financial Innovation Hub and the country’s fintech association (Adofintech) offered a workshop about open finance and blockchain. (BeInCrypto)

🇲🇽 Mexico

• A bitcoin-focused neobank called Yopaki is expanding access to crypto for Mexican users. (Bitcoin Magazine)

• 404 Media delved into recently unsealed court records showing how drug traffickers are using Tether (USDT), which is allegedly being sold at a discount in Mexico due to its links to criminal activity. (404 Media, Decrypt)

• A platform called Billions Trade Club is reportedly returning mass payments in response to scrutiny about its business model. (BeInCrypto, Excélsior, Diario de Querétaro)

• More than 3,000 people got caught up in a crypto trading bot scam. (Milenio, Protos)

🇵🇦 Panama

• Mark your calendars for Panama Blockchain Week, which will be held in Panama City between April 22-24. Panama’s President José Raúl Mulino is listed as a keynote speaker. (Cointelegraph, Panama Blockchain Week, CriptoNoticias, BeInCrypto)

🇸🇻 El Salvador

• Fitch Ratings upgraded El Salvador’s rating to B- from CCC+ with a stable outlook. (Reuters)

• El Salvador granted Bitget a license to provide bitcoin services in the country. (Bitget, Cointelegraph, BeInCrypto)

• Bitfinex Derivatives will relocate to El Salvador from the Seychelles after receiving a digital asset service provider license (DASP). (Cointelegraph, BeInCrypto, The Block)