Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news from the past week. In this issue, Brazil pushes BRICS to use national currencies instead of the dollar, bitcoin adoption reaches critical levels in El Salvador, and smart contracts achieve legal status in Argentina.
Latam Insights: Brazil Pushes BRICS Away From the US Dollar, Bitcoin Adoption Falters in El Salvador
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Brazil Pushes BRICS to Shift From US Dollar, Advocating for National Currencies in Global Trade
Brazil’s Foreign Affairs Secretary for Asia and the Pacific, Eduardo Paes Saboia, stated on Tuesday that Brazil is advocating for a greater use of national currencies among BRICS member countries in global trade, aiming to reduce reliance on the U.S. dollar. Originally established in 2006 by Brazil, Russia, India, and China, the BRICS group was later joined by South Africa in 2011. In 2024, BRICS expanded further with the inclusion of Egypt, Iran, the United Arab Emirates (UAE), Saudi Arabia, and Ethiopia as full members.
Speaking to reporters, Saboia noted that discussions about this shift are already underway, stating that the issue of reducing the reliance on the U.S. dollar “has already been considered at meetings of finance ministers and heads of central banks” of the BRICS nations. Expressing optimism about the upcoming BRICS summit in Kazan, he was quoted by Tass publication as stating:
I hope that those discussions will be reflected in a certain way in the declaration in Kazan.
Bitcoin Adoption Reaches Critical Low in El Salvador Despite Government Push
A new survey shows the lackluster state of bitcoin adoption in El Salvador, even when President Nayib Bukele’s government has rallied to support it. The “Country’s Path” survey, carried out by the Center for Citizen Studies, Disruptive Magazine, and Francisco Gavidia University, examined the answers of over 1,200 citizens on several relevant topics for the country, including bitcoin.
The poll found that bitcoin usage is now at one of its lowest levels, with only 7.5% declaring they had used bitcoin to make transactions. This number shows a decline compared with last year’s adoption figures, which another national poll put at 12%.
Local analysts criticize the low adoption numbers, highlighting the high levels of resources invested to incentivize the use of the currency since the government declared it a legal tender in 2021. El Salvador even offered a $30 nationwide airdrop for citizens registering their data on Chivo, a bitcoin wallet built by the national government.
Smart Contracts Achieve Legal Breakthrough in Argentina
Smart contracts, the automatically executed blockchain-based equivalent of paper contracts, have reached a milestone in Argentina. According to local reports, the first Cardano-based smart contract was approved to be legally binding by Argentine jurisdiction, which might be the first time this has happened in the country and even the world.
The contract specifies a four-month loan repaid with a 10% interest between Mauro Andreoli and Lucas Macchia, two Cardano ambassadors in Argentina. The loan was issued for 10,000 ADA (close to $3,430). Andreoli stated that, in practice, this contract formalization means that “any breach can be enforced in court for the performance of the obligation in ADA.”
However, due to the digital nature of smart contracts, the duo had to sign a legal document as a complement.
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