Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this week’s edition, Meliuz pioneers bitcoin as a corporate reserve asset in Brazil, Argentine crypto wallets face potential extinction, and Ripple launches a pilot to benefit Colombian farmers.
Latam Insights: Meliuz Purchases 274 BTC in Brazil; Argentine Wallets Face Potential Extinction
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Meliuz Purchases 274 BTC, Pioneering Bitcoin Treasury Strategy in Brazil and Latin America
Latin America is entering the era of the bitcoin treasury companies, following a trend pioneered by Michael Saylor’s Strategy in the U.S. Meliuz, a Brazilian cashback business, has become the first public company in Brazil and Latam to establish a bitcoin treasury strategy.
Israel Salmen, CEO of the company, explained that Meliuz had jumped onto the bitcoin treasury bandwagon as its shareholders approved the move “by a wide majority.”
Salmen stated:
And today, we took another step forward: Acquired 274.52 BTC for US$ 28.4M. Average price: US$ 103,604, achieving a BTC Yield of 600%.
This purchase marks the start of a new era for the company. With this addition, Meliuz’s bitcoin holdings stand at 320.2 BTC, with an average purchase price of $101,703.80.
The Argentine Crypto Wallet Ecosystem Is at Risk: What’s Happening?
The Argentine crypto industry, including exchanges and wallet providers, is currently facing a challenging situation due to a tax established in 2001. The “debit and credit tax,” which imposes a 1.2% duty on each cryptocurrency transaction, has put local providers at a disadvantage compared to traditional financial institutions and international crypto giants.
In 2021, the cryptocurrency industry applied for a reduction in this tax, successfully obtaining a reduced rate of 0.075% due to its links to the internet industry.
However, recent reports indicate that a revision from ARCA, the Argentine tax agency, could determine that the full tax may apply to these industry players, putting them at risk. This would be disastrous for the industry, as these rates are higher than the transaction fees they charge.
Additionally, the retroactive application of this tax to local operations would spell doom for many, forcing them to close their doors due to an inability to pay these taxes.
Ripple Taps XRP Ledger to Boost Income for Farmers
Ripple announced on May 15 the launch of its second pilot this year with Mercy Corps Ventures, working in partnership with traceability technology provider WËIA, to advance agricultural finance in Colombia. The initiative is part of Ripple Impact’s broader “Unlocking Opportunity” program and focuses on using blockchain technology to improve the livelihoods of smallholder farmers. Ripple emphasized the project’s goals:
In collaboration with WËIA, this pilot is designed to increase financial inclusion and income for smallholder farmers in Colombia through blockchain-powered traceability on the XRP Ledger (XRPL).
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