Latin America, Tipping Point: Is The Region Cooling Down On Bitcoin Adoption?

Time:2021-12-25 Source: 1187 views Policy Copy share

Is Latin America not concerned about Bitcoin anymore? Did Africa beat us to the punch? They got the Dorsey/Jay-Z fund, and countries from that region are constantly present on Bitcoin media. On the Latin side of the world, things are oddly calm. After the effervescence that El Salvador caused, the whole continent felt on the verge of a breakthrough. It didn’t happen. The moment passed. And here we are.

On the other hand, both “Bitcóin” and “Criptomonedas” are now part of the Real Academia Española dictionary. The organization is the official gatekeeper of Spanish as a whole, so this is as official as it gets. Notice the spelling of Bitcoin and expect to see it written like that in Spanish publications from now on. Such is the power of the RAE.

Brazil: Regulation And New Ways To Buy Bitcoin
Brazilian regulators are discussing three projects regarding cryptocurrencies. In general, it’s the same old story that in every other country. They want exchanges to review their clients with strict AML procedures, tax everything, and little else. It’s for the consumers’ own good, though.
The only interesting thing in the Brazilian bills is that they’re proposing zero taxes for PoW mining, as long as it’s done with clean and renewable energy. Bitcoin is already the cleanest industry around, and it’s on its way to changing the energy game for good. This is just another step in that direction.
Bitcoinist already told you this story, “The largest online commerce platform in Latin America, MercadoLibre, will allow its Brazilian customers to buy, sell and hold crypto using MercadoPago’s digital wallet. The company’s revenues through digital transactions rose during the pandemic, and it is now looking to expand its “financial inclusion” horizons.”
Notice that MercadoLibre started their crypto experiment in Brazil, but they are an Argentinian company. Which brings us to…

Argentina: Latin America Means Taxes
Atomico3 will be a stablecoin pegged to the price of Lithium. Pablo Rutigliano, head of The Argentine Chamber of Lithium, said: “Latin America has the largest lithium reserves in the world, but the problem is that the price of the lithium market today is set in China. It’s necessary that we form it locally and regionally.” Do they need a stablecoin for that?
Argentina used to consider cryptocurrency transactions as cash-like, and they were exempt from tax. Not anymore. “Transactions involving cryptocurrencies are subject to Argentina’s tax on credits and debts (popularly known as the ‘cheque tax’), effectively immediately, the government said in a decree published on Wednesday,” according to the Buenos Aires Times.
Argentinian tax authorities are also considering taxing Play-To-Earn games. Good luck with that.
A few days ago, Buenos Aires hosted the “NFT Latin America Forum.” An exclusive event for 100 guests, it featured fashion brands, NFT gamers, and financial institutions as speakers.
Venezuela: Cryptocurrency Congress
Since the Venezuelan government created the Petro, arguably the world’s first CBDC, they can’t be Bitcoin Only. The government itself organized the 2nd National Congress of Cryptoassets Aragua 2021. Its aim was “to strengthen alliances with entrepreneurs, researchers, digital miners, businessmen and government agencies to move towards a 100% digital economy.” Good luck with that.

Chile: Latin America Means CBDCs
It’s the same old story. Chilean regulators announced that they’re discussing regulating “the use of Bitcoin and other cryptocurrencies as legal means of payment in the country.” In the same breath, they announced that they’re “developing its own central bank digital currency.” Of course, the Bitcoin proposal is just a bill, while the CBDC is an absolute certainty.
El Salvador, Bitcoin Country Is In Latin America
The only country in the world to have Bitcoin as legal tender is a common topic around these parts. We talked about the Bitcoin City project and did our best to cover Bitcoin Week. We flipped the script and discussed the problems with the Chivo wallet, and then doubled down on it. A friend of ours talked to Salvadorans and tested the fast-food chains Lightning solutions. Plus, a Salvadoran and a Dutch national gave us their version of the story.

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