Welcome to Latam Insights, a compendium of the most relevant crypto and economic news from Latin America over the past week. In this week’s edition, El Salvador de-risks its economy from bitcoin, Coinbase launches in Argentina, and Hive Digital expands its operations in Paraguay.
Latam Insights Encore: El Salvador Yields to IMF Pressure, Coinbase Lands in Argentina
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El Salvador Complies With IMF Requirements: Bitcoin Legal Tender Status Withdrawn
El Salvador, a bitcoin pioneer, has taken action to reduce its adoption. The Salvadoran Congress passed a bitcoin law reform that disarms, in part, the considerations surrounding the amalgamation of bitcoin and crypto as part of the state apparatus.
The Bitcoin law reform was approved without setbacks in a Congress controlled by President Nayib Bukele’s party. It removes bitcoin’s current legal tender status and makes its acceptance voluntary.
The articles where the state compromises to provide the means to transact in bitcoin and alternatives for direct conversion between bitcoin and dollars were also purged.
The status of bitcoin as a unit of account was also modified, withdrawing provisions that allowed merchants to express prices in BTC.
Coinbase Launches in Argentina, Targeting 5 Million Daily Crypto Users
Crypto exchange Coinbase (Nasdaq: COIN) announced on Jan. 28 that it has received regulatory approval to operate in Argentina, securing Virtual Asset Service Provider (VASP) registration from Argentina’s National Securities Commission (CNV). This approval enables the platform to provide its services legally in a country where cryptocurrency plays a significant role in the financial system. The announcement details:
Coinbase has received regulatory approval to launch in Argentina, where 5 million Argentinians use crypto daily.
By entering one of the world’s most dynamic crypto markets, Coinbase aims to address economic instability and offer tools to support financial independence.
Hive Digital’s Paraguay Purchase to Quadruple Bitcoin Mining Capacity by Late 2025
The $56 million deal includes a 240 MVA substation, land, and facilities, expanding Hive Digital Technologies‘ (TSXV: HIVE) operational capacity in Paraguay to 300 MW. The firm insists that combined with existing sites in Canada and Sweden, the company’s global capacity will reach 430 MW by Q3 2025.
The Yguazú site will be developed in two phases: Phase 1, 80% complete, will add 6 EH/s by April 2025, while Phase 2 will add 6.5 EH/s by August 2025 using hydro-cooled application-specific integrated circuit (ASIC) bitcoin miners.
Hive estimates total completion costs at $400,000 per MW. A separate 100 MW Paraguay project, set for June 2025 energization, will contribute an additional 6.5 EH/s, bringing interim capacity to 13 EH/s.
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