Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this week’s edition, Bolivia announces the integration of stablecoins into its banking system, Tether abandons mining operations in Uruguay, and the Libra Trust emerges out of the blue.
Latam Insights: Bolivia Embraces Stablecoins, Tether Leaves Uruguay
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Historic: Bolivia to Integrate Stablecoins Into Its Banking System, Use Them as Legal Tender
Bolivia is on the verge of embracing cryptocurrency as part of its financial system, marking a historic move across Latin America.
In a recent interview, Jose Gabriel Espinoza stated that the country would start including cryptocurrency in its banking system, opening the doors for banks to begin offering services using these instruments.
Among these services, he detailed savings accounts, credit cards, and loans, all based on crypto.
The focus of the proposal would be on stablecoins, which, due to the ongoing exchange controls, have become an alternative for citizens to hedge against devaluation and inflation.
Tether Finally Winds Down Mining Operations in Uruguay
Tether is leaving Uruguay after months of negotiating for better energy tariffs with the national power company (UTE).
According to local press, the company notified of its decision to abandon its mining operations in the country after a meeting with the national labor ministry (MTSS), terminating 30 out of 38 employees on its payroll.
The measure comes after Tether’s Uruguayan subsidiary Microfin had stopped payments to the national power company in July, prompting a power cut situation that affected two mining sites in September.
Nonetheless, at the time, a company spokesperson stated that there was no debt, as UTE had a warranty deposit issued by Tether.
Libra Trust Launches out of the Blue to ‘Empower’ Argentine Companies
A new institution, the Libra Trust, has emerged to fulfill part of the original purpose of the Libra token, which was launched with this purpose in mind. The trust, which has been allegedly funded with a percentage of the Libra token launch proceeds, will offer grants to Argentine companies through its website.
Data researcher Fernando Molina linked the fund movements registered last week, pairing almost $100 million worth of cryptocurrency that was moved out of wallets tied to the Libra token launch to this initiative.
Nonetheless, the site only states that it is operating “independently of Hayden Davis and Javier Milei,” without offering more information about the trustee and the protector designated to manage and oversee the trust’s activities.
FAQ
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What significant change is Bolivia making regarding cryptocurrency?
Bolivia plans to integrate stablecoins into its banking system, allowing them to be used as legal tender for various financial services. -
What situation is Tether facing in Uruguay?
Tether is ceasing its mining operations in Uruguay after failing to negotiate better energy tariffs, resulting in the termination of 30 employees. -
What is the purpose of the newly established Libra Trust?
The Libra Trust aims to provide grants to Argentine companies, reportedly funded by proceeds from the Libra token launch, while maintaining independence from key figures involved in the project.
