This week’s LATAM crypto news highlights the region’s dynamic cryptocurrency scene.
Brazil, for example, could begin to regulate cryptocurrency-related activities, while Argentina continues on its digital innovation path by allowing underground payments in cryptocurrency.
In Brazil, Public Consultation 111 seeks to regulate the introduction of virtual asset services into the Central Bank of Brazil’s foreign exchange market.
This program aims to incorporate virtual asset service providers’ activities and operations in the currency market, according to a recent declaration on the country’s official presidential portal.
The proposal would amend many prior resolutions to comprehensively regulate these transactions under Brazilian capital restrictions.
The BCB has been closely watching technological breakthroughs, business models, and concepts connected to virtual assets, particularly their relationship to the foreign exchange market and international capital flows.
This inspection has revealed a huge increase in traded volumes and integration with traditional financial sectors, emphasizing the significance of regulatory talks in international forums.
Such conversations advocate for regulations that are consistent with the capabilities and hazards connected with virtual assets.
Furthermore, the BCB’s investigation indicates that a variety of business models utilizing virtual assets could improve service delivery in the foreign exchange market.
This regulatory framework has the potential to improve the overall functionality of Brazil’s currency market by making it easier to conduct transactions and make investments.
Argentina allows cryptocurrency for subway payments
The election of Argentina’s new president has resulted in a more positive stance toward the use of cryptocurrencies.
Recent regulatory reforms have allowed a variety of payment methods, including digital currencies, to be accepted.
As of December, Buenos Aires citizens can pay for metro fares with nearly any payment option, including cryptocurrencies.
Lemon, a local company that operates in numerous Latin American nations, has announced that its cards may now be used to pay for metro travel in the capital.
This flexibility allows users to utilize either local currency or their cryptocurrency, depending on their preference.
Visa has also launched a savings program for users who pay using contactless methods on the subway, and Lemon’s partnership with Visa allows customers to benefit from large discounts and cashback.
The press announcement stated that to utilize Lemon’s wallet for subway payments, users must have a physical Visa card.
It was also observed that frequent travellers might save up to 30,000 pesos per month through cashback rebates, while each payment helps to grow Bitcoin, confirming its image as a valued asset.
The introduction of contactless payment systems in the Buenos Aires subway is a key step in modernizing and digitalizing Argentina’s public transportation, improving user experience and the interaction of citizens with their daily expenses.
Colombia ranks 4th in LATAM for Bitcoin revenues, earning $6.79 billion in 2024
According to Chainalysis’ Geography of Cryptocurrency Report 2024, Colombia has emerged as a major player in the regional cryptocurrency environment.
The country ranked fourth in Bitcoin transactions, having amassed more than US$6.788 billion during the same period.
The latest increase in Bitcoin’s value, surpassing a critical milestone of US$100,000, coincided with a government declaration by the newly elected president Donald Trump.
This development caused waves in global markets, increasing valuations for corporations with Bitcoin holdings and raising the cryptocurrency assets of countries like El Salvador.
However, the consequences of this increase go beyond the bounds of established economies and wealthy investors.
According to industry experts, Bitcoin’s soaring price and more favourable laws under the US government, alongside the potential establishment of a Bitcoin strategic reserve, poised the cryptocurrency to gain enhanced legitimacy and a growing user base.
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