The popular savings strategy of exchanging pesos for U.S. dollars in Argentina is being substituted by bitcoin investments, which have had better performance lately. Numbers from Lemon, a local cryptocurrency exchange, indicate bitcoin purchases have risen to their highest number in 20 months as Argentines seek better alternatives than the dollar, whose value has been […]
Bitcoin News
Latam Insights: Argentina’s Milei States Dollarization Is Close, Bitfarms Expands In Paraguay
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Argentine President Javier Milei reiterates dollarization is near, Bitfarms announces a new site in Paraguay, and El Salvador approves a soy-backed token issuance.
Argentina’s Milei Talks Dollarization Again
Javier Milei, president of Argentina, has referred to the possible dollarization of the Argentine economy again. In an interview with CNN anchor Patricia Janiot, Milei stated that the dollarization process was still part of the goals of his administration, but that he had to start healing the economy due to the state in which he received the country.
Milei explained:
We bought 5 billion dollars and in Argentina, the monetary base is 7.5 billion dollars. We are very close to being able to dollarize.
Milei advertised the shutdown of the central bank and the elimination of the national fiat currency as a key part of his government during his presidential campaign. Recently, he has been pushing for reforms to diminish the size and influence of the state in several affairs, having issued an emergency executive order (currently under the scrutiny of national courts) and sending an omnibus law to Congress to this end.
Bitfarms Announces Expansion in Paraguay
Bitfarms, a Nasdaq-listed cryptocurrency mining company, announced the expansion of its operations in Paraguay. The company reported having secured land near the Itaipú Dam, one of the largest hydroelectric energy reservoirs in South America and the world. The land will be hosting a 100MW new mining site to be completed later this year.
Geoff Morphy, president and CEO of Bitfarms, stated:
Positioned to benefit from the region’s abundant renewable energy resources, this new facility should be sustainable both economically and environmentally.
Furthermore, Morphy added that with this new facility, 85% of the portfolio of the company’s operations will be powered by “low-cost green energy that promotes environmentally sustainable bitcoin mining.”
El Salvador Authorizes Soy-Backed Token Issuance
The National Digital Assets Commission of El Salvador authorized the issuance of ESOY, a token backed by soybeans, being the country’s first private tokenized asset issuance. 7.6 million tokens that will be available for 60 months were issued, with each ESOY token being backed by a bushel of soy grains, according to the site of E-grains, the company behind this issuance.
The commission stated that this “opens the doors to private issuances after the historic milestone of the Volcano Bond, the first issuance approved on December 11, 2023.” 0 million of these instruments were issued on January 18.
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Latam Insights: Argentina’s MIlei Blasts Collectivism at Davos, Venezuelan Petro Still Alive
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Argentine President Javier Milei warns about the dangers of collectivism at Davos, the Venezuelan petro is still alive, and Colombia works to regulate crypto.
Javier Milei Defends Capitalism and Entrepreneurship at Davos
Javier Milei, president of Argentina, warned against Western society’s new path, criticizing the ideas of collectivism that, according to his thoughts, are advancing in several nations. In a speech at this year’s World Economic Forum (WEF) meetings at Davos, Milei stressed the dangers these ideas presented to today’s developed world.
Milei stated:
The West is in danger, it is in danger because those, who are supposed to defend the values of the West, find themselves co-opted by a vision of the world that – inexorably – leads to socialism, consequently to poverty.
As an opposite to these new conceptions, Milei defended capitalism and libertarian ideas that have boosted the world economy since the Industrial Revolution. He also criticized the issue of social justice, stressing that the means to defend it and sustain it are born out of state-managed violence and coercion.
Furthermore, he reflected on the value of entrepreneurs in today’s society, stating they were “heroes,” “social benefactors,” and “creators of the most extraordinary period of prosperity we have ever experienced.”
Venezuelan Petro Still Alive
The Venezuelan petro, one of the first state-backed cryptocurrencies, is still active and was not liquidated as many reports sustained last week. While several sources pointed to the imminent liquidation of the petro, the crypto asset is still available in the government’s wallet system – the Homeland platform – and users can transact and consult their savings, according to petro advocate Petro Divisa.
Nonetheless, other cryptocurrency assets in the platform, including BTC, LTC, and DASH, were removed and reimbursed in fiat currency. This will allow the petro team to focus on developments directly linked to the petro.
Colombia Confirmed Advancements in Creating a Cryptocurrency Framework
The government of Colombia confirmed it has advanced in making a cryptocurrency-specific law. Economy Minister Ricardo Bonilla revealed the steps taken regarding this goal during a panel at the World Economic Forum (WEF) meeting in Davos.
Bonilla stated:
Construction has already begun in Colombia and, based on a work table, a bill is being built to regulate cryptocurrencies.
In November, Colombian President Gustavo Petro met with blockchain experts from JAN3 and other projects to discuss the implementation of this tech in several fields for the country, like health system billing processes and land registries.
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Argentina’s Milei Blasts Collectivism at Davos: ‘The West Is in Danger’
Javier Milei, the president of Argentina, blasted what he perceives to be the advance of collectivist ideas in Western society at the World Economic Forum (WEF) 2024 annual meeting at Davos, warning about the dangers these represent for the quality of life in the world. Milei explained that these ideas, which might be adopted with good intentions, inevitably open the door to state action and socialism.
Javier Milei Warns Against Collectivist Ideas at Davos
Javier Milei, president of Argentina, warned against Western society’s new path, criticizing the ideas of collectivism that, according to his thoughts, are advancing in several nations. In a speech at this year’s World Economic Forum (WEF) meetings at Davos, Milei stressed the dangers these ideas presented to today’s developed world.
Milei stated:
The West is in danger, it is in danger because those, who are supposed to defend the values of the West, find themselves co-opted by a vision of the world that – inexorably – leads to socialism, consequently to poverty.
As an opposite to these new conceptions, Milei defended capitalism and libertarian ideas that have boosted the world economy since the Industrial Revolution. He also criticized the issue of social justice, stressing that the means to defend it and sustain it are born out of state-managed violence and coercion. “It is an intrinsically unjust idea because it is violent; It is unfair because the State is financed through taxes and taxes are collected coercively,” he explained.
Milei states that collectivism places obstacles in the way of entrepreneurs, making it more difficult to produce goods and provide services at better prices. He also blasted socialism, stating that it was a failure in every country it was tried, bringing poverty to millions.
The libertarian explained that Argentina was an example of what these collectivist policies can do to a country and remarked that the supporters of these policies, after having failed to establish economic questions as their focus, migrated their struggles to social areas like radical feminism, population control, and environmental issues.
Finally, he highlighted entrepreneurs’ roles in today’s world, calling them not to yield to the political class or the state. He concluded:
You are social benefactors. You are heroes. You are the creators of the most extraordinary period of prosperity we have ever experienced.
What do you think about Milei’s views on collectivism, capitalism, and socialism? Tell us in the comments section below.
Argentina’s President Javier Milei Sends Omnibus Bill to Congress, Seeking Legislative Powers
Argentina’s President Javier Milei has sent a massive new bill to Congress to adopt a scheme of regulations to advance his goal of modernizing the Argentine state. If approved, the bill would allow Milei to legislate by executive order on certain emergency areas and privatize state companies, among other aspects.
Javier Milei Proposes Omnibus Bill to Obtain Legislative Faculties
Argentina’s President Javier Milei has continued pressing on in his transformative goals for the country. The so-called libertarian has sent a massive omnibus bill to Congress, which touches on or modifies 20 laws. The bill, titled “Law of Bases and Starting Points for the Freedom of Argentines,” seeks to continue with the ostensibly libertarian reform of the Argentine state, touching on subjects like personal taxes, import laws, justice administration, education, and others.
Also, the bill calls for declaring a national emergency in several fields, including finance, economy, financial, fiscal, pensions, security, defense, tariffs, energy, health, administrative, and social, until December 2025, with the possibility of extending it for two more years. Approving it would allow Milei to legislate via executive orders during his whole mandate, sidestepping the Congress in which his party has a minority.
Experts agree that this part of the bill is difficult to approve, given that Congress would delegate its functions to the executive power. In its more than 600 articles, the bill also determines that state companies will be declared “susceptible to privatization,” preparing the 41 companies that Argentina owns to be sold.
The document further introduces a new asset regulation proposal that allows Argentines to declare ownership of several assets, including “cryptocurrencies, crypto assets, and other similar goods, regardless of who has been their issuer, who is their owner or where they were deposited, guarded or stored,” paying up to 15% on the calculated excess of the first 0,000 regularized. This means the first 0,000 in regularized assets would not be subject to paying anything under the proposal.
The bill will be discussed in special congressional sessions, and each point will be treated individually. Some points can be approved, while others can be repealed. Nonetheless, the CGT, the largest workers’ group in the country, has already called for a general strike on January 24 to reject Milei’s bill.
Last week, Milei also issued a massive emergency executive order, which is facing several legal actions in national courts.
What do you think about Javier Milei’s omnibus bill? Tell us in the comments section below.
Argentina’s President Javier Milei Issues Major Deregulation Measures via Executive Order
Javier Milei, president of Argentina, has issued an emergency executive order repealing a series of laws to prepare the state for upcoming privatization and modernization moves. The executive order, which has 366 articles, touches on major aspects of Argentine life, including rents, job regulation and land regulation. It also converts all state companies into limited companies.
Argentine President Javier Milei Launches Massive Deregulation Measures
President Javier Milei has launched the first batch of measures focusing on reducing the footprint and reach of the state in Argentina, as he promised during his campaign. On December 21, Milei issued a national emergency executive order that modifies — and eliminates — some of the most relevant laws that regulate work, rent, product pricing, and other aspects of the Argentine citizens’ lives.
The executive order, titled “Decree of Necessity and Urgency – Bases for the Reconstruction of the Argentine Economy,” grounds its action on the economic crisis that Argentina is currently facing, arguing that the only way of overcoming this situation is to revamp the country’s economy.
The document states:
The National State will promote and ensure the effective validity, throughout the national territory, of an economic system based on free decisions, adopted in an area of free competition, with respect for private property and the constitutional principles of free circulation of goods, services, and work.
For this objective, the order calls for the deregulation of trade, services, and industry throughout the national territory, declaring all restrictions on the supply of goods and services void and converting all state companies into limited companies, preparing them for an upcoming privatization action.
The 366-article emergency order is garnering immense opposition from lawmakers in the Argentine Congress, which can void it if both chambers repeal it by a simple majority.
Analysts and experts are already questioning the constitutionality of the changes to the existing regulatory framework, stating that they could even lead to legal action against Milei. Raul Ferreira, a law professor at Buenos Aires University, stated:
The decree is openly unconstitutional because the legislation that is intended to be carried out with the aim of permanence has to be made by Congress.
What do you think about Milei’s steps to deregulate the Argentine economy? Tell us in the comments section below.
Argentina’s President Javier Milei Axes Ministries; ‘There Is No Money’
Javier Milei, the president of Argentina, fulfilled his promise of reducing the number of ministries of the country in one of the first executive orders of his administration. The number of ministries was reduced to nine, as the state needs to cut expenses by making adjustments targeting a reduction of 5% of the gross domestic product (GDP).
Libertarian President Javier Milei Reduces Ministry Number to Nine in Argentina
Javier Milei, now the official president of Argentina, reduced the number of ministries in the country in one of the first executive orders of his administration. The leader, who came to power preaching a policy of cost reduction and extensive state reforms, fulfilled one of the promises of this campaign with this action.
Only nine ministries remain out of the ones in the previous administration. These encompass the following areas: Homeland, Foreign Relations, International Trade and Worship, Defense, Economy, Infrastructure, Justice, Security, and Health and Human Capital. Ministries in the Environment, Tourism, Transportation, Education, Culture, Employment, Public Works, Social Development, and Women’s areas were closed.
In his first speech as president, Milei said he would apply the state reduction policies he announced during his campaign, including a government expenditure cut by 5% of the gross domestic product (GDP). He stated there was no alternative to these policies, saying the state had “no money” left.
Milei declared:
The situation in Argentina is critical and an emergency. We have no alternatives and we don’t have time either. We have no room for sterile discussions.
The government is expected to give more details on these strong cuts and economic measures this week to support Milei’s policies to achieve a fiscal balance goal.
Nonetheless, the process for achieving another of the president’s promises, who had stated he would close the Central Bank of Argentina to dollarize the economy, is still unclear. Santiago Bausili, the newly appointed head of the bank, has stated that the announced closure will be symbolic, explaining the government will work to control the monetary issuance instead.
What do you think about the first actions of Javier Milei as president of Argentina? Tell us in the comments section below.
Argentina’s President-Elect Javier Milei ‘No Anarcho-Capitalist’ Says Former Greek Finance Minister
According to Greece’s former finance minister, Yanis Varoufakis, Argentina’s president-elect Javier Milei is “no anarcho-capitalist.” The former finance minister said Milei’s plan to fight inflation with dollarization “is like nuking a country to get rid of Covid-19.”
Milei a Dictator in Libertarian Clothing
Former Greece finance minister and anti-capitalist, Yanis Varoufakis, has warned that Argentina’s incoming president Javier Milei is “no anarcho-capitalist” as many libertarians would like to believe. Instead, Varoufakis, now an economics professor, said he sees the far-right winner of the Nov. 19 poll as another (Jorge Rafael) Videla but in libertarian clothing. Videla was Argentina’s military ruler between 1976 and 1981.
The remarks by Varoufakis, who led Greece’s debt renegotiation talks with the European Central Bank (ECB) in 2015, followed reports that Milei is planning to honor his promise to abolish the country’s central bank. In addition to shutting down the central bank, Argentina’s president-elect has reportedly promised to privatize the state energy company YPF and dispose of all public broadcast networks.
Milei is no anarcho-capitalist. Robert Nozick (author of ANARCHY, STATE & UTOPIA) was that. No, Milei is a new Videla in libertarian clothing determined to end the mere possibility of Argentinian democratic sovereignty. As for dollarisation vs inflation, it is like nuking a… https://t.co/QR2IZGC3A8
— Yanis Varoufakis (@yanisvaroufakis) November 20, 2023
Milei’s unorthodox solutions to problems afflicting Argentina similarly piqued the interest of many bitcoiners and crypto enthusiasts around the world. In addition, Milei’s past positive remarks about the crypto assets have greatly endeared him with the bitcoin community.
However, in a post on X (formerly Twitter), Greece’s former finance minister rejected the notion that Milei is proving to be an anarcho-capitalist. Instead, he said he sees the American philosopher and author Robert Nozick as the real anarcho-capitalist.
Varoufakis Against the Use of Dollarization as an Inflation-Fighting Tool
According to Wikipedia, anarcho-capitalism is an anti-statist, libertarian political philosophy and economic theory. This theory is supported by those who advocate for the replacement of centralized states with stateless societies with “systems of private property enforced by private agencies.”
#ARGWatch: In celebration of Javier Milei’s election victory, Argentines have headed to the streets, where they are ripping up their worthless pesos and using them as confetti.
Finally, it looks like Argentina will DITCH THE PESO & OFFICIALLY DOLLARIZE.pic.twitter.com/rVLol2ahcb
— Steve Hanke (@steve_hanke) November 20, 2023
Meanwhile, as previously reported by several media outlets including Bitcoin.com News, Milei had pledged to dollarize the economy. Many experts, including Johns Hopkins economics professor Steve Hanke, support the president-elect’s idea of reining in inflation by dollarizing the Argentine economy
However, concerning Milei’s plan to fight Argentina’s runaway inflation via dollarization, Varoufakis said:
“As for dollarisation vs inflation, it is like nuking a country to get rid of Covid-19. Argentinians deserve our solidarity in the nightmare they are about to descend.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Latam Insights: Argentina’s Massa Proposes Blockchain Oversight, Drex Will ‘Kill’ Lesser Cryptos in Brazil
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Argentine presidential candidate Sergio Massa has proposed to use blockchain for state oversight, the Brazilian securities regulator president stated (CBDC) drex might ‘kill’ lesser cryptocurrencies, and Okx announced an expansion to Brazil in the coming months.
Economy Minister Sergio Massa Proposes Use of Blockchain for State Oversight
Sergio Massa, economy minister and presidential candidate in Argentina, has hinted at using blockchain tech to control state accounts, giving citizens access to this data.
In a recent rally, Massa hinted at creating a blockchain system that would allow Argentines to have access to the execution plan of the national budget using mobile phones. He declared:
We live in the age of communication. I want every Argentine to be able to control the state accounts online from their cell phone. So each of the Argentines has their blockchain when interacting with the state.
Massa said that this system might be used to register contracts between companies executing state work and the government. He stated the system would help to create certainty about the state’s contractual relations, emphasizing the benefits this would bring to the transparency of his hypothetical upcoming administration.
Nascimento: Drex Might ‘Kill’ Many Cryptocurrencies in Brazil
Drex, the Brazilian central bank digital currency (CBDC), might relegate other cryptocurrencies in Brazil to the proverbial dumpster, according to João Pedro Nascimento, president of the Brazilian Securities and Exchange Commission (CVM). At a symposium, Nascimento stated that while most established cryptocurrency projects will be safe, lesser known crypto projects will have their popularity affected due to the functionalities that drex will offer.
Nascimento explained:
I’m not talking about Bitcoin, but drex will reduce the attractiveness of smaller cryptocurrencies.
While there is still no definitive date for drex’s launch, some reports indicate it might happen next year.
Okx Announces Expansion to Brazil
Okx, one of the top cryptocurrency exchanges by volumes traded, revealed it will expand its operations to Brazil in the coming months. Okx Executive President Hong Fang stressed that Latin America and Brazil were “strategic” for the cryptocurrency industry due to the region’s different approach to crypto, which uses these tools as savings instruments and as an inflation hedge.
Fang also clarified that the exchange would adhere to the national cryptocurrency laws whenever they are completed by the national bank, creating a local team for this purpose and offering Portuguese-based customer support.
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Argentina’s Presidential Candidate Sergio Massa Suggests Using Blockchain for State Finance Oversight
Presidential candidate and Economy Minister Sergio Massa has proposed to develop a system to allow citizens to control and monitor state finance using blockchain tech in Argentina. At a recent presidential campaign rally, he declared that Argentines “should be able to control state accounts with their mobile phones,” interacting with the national budget.
Sergio Massa Discusses Blockchain Monitoring for State Accounts in Argentina
Sergio Massa, a presidential candidate and the Economy Minister of Argentina, proposed implementing a blockchain-based system to monitor state accounts and the execution of the national budget. Massa declared that this system would benefit the citizens and the country, increasing the transparency of the expenses and incomes by making this data available to the population.
At a rally, Massa stated:
We live in the age of communication. I want every Argentine to be able to control the state accounts online from their cell phone. So each of the Argentines has their blockchain when interacting with the state.
Furthermore, Massa stressed that this proposal was framed into the construction of a new stage of the national government, in which “ethics, integrity, fight against corruption, spending control, and transparency” would be part of the work agenda of his upcoming administration.
Transparency in Budget Spending
Massa described a mechanism to establish contracts between the Argentine state and companies executing state budget work using this blockchain system.
He explained:
In this plan that the State must have, in addition to a blind application mechanism between the contracting party and the contracted party, there must be a certain payment date in the bidding process, in the contracting process, and in the award process.
He praised blockchain tech, concluding that it gives traceability and certainty to state contracts and serves to control public expenses.
Massa, who will face libertarian Javier Milei in a runoff election on November 19, has also proposed the creation of a national digital currency that would be part of a plan to bring the economy to formal channels, combined with a tax reduction scheme.
Another of his plans includes using natural gas from Vaca Muerta, one of the largest oil fields in the country, to mine bitcoin. In a recent interview, he stated he supported the idea due to the “reduction in the carbon emissions” of the activity.
What do you think about Sergio Massa’s proposal to develop a blockchain-based system for monitoring budget expenses in Argentina? Tell us in the comments section below.