This week, the LATAM cryptocurrency landscape demonstrated its dynamic nature once more.
El Salvador has decided to continue with its Bitcoin purchases, despite the IMF’s warnings, while MetaMask innovates by launching its crypto debit card for Mexico, Colombia and Brazil.
El Salvador has revealed plans to continue buying bitcoin, maybe at a faster pace, despite a financing arrangement with the International Monetary Fund (IMF) that proposes reducing its exposure to the cryptocurrency.
Stacy Herbert, director of El Salvador’s national bitcoin office, claimed that bitcoin will remain legal tender in the country and that the government will continue to add to its strategic reserves.
El Salvador signed a $1.4 billion loan agreement with the IMF on Wednesday, which included a review of its bitcoin rules, including the requirement that all tax payments be made in US dollars.
According to an IMF spokeswoman, anticipated legal amendments will make bitcoin acceptance voluntary in the private sector.
Analysts believe that the government’s effort to acquire more Bitcoin is a strategy to counter negative opinions of the cryptocurrency following the agreement with the IMF.
MetaMask launches crypto debit card in Brazil, Colombia, and Mexico
MetaMask introduced the MetaMask Card in Brazil, Mexico, and Colombia, a huge step forward for cryptocurrency followers in Latin America.
This unique debit card enables users to easily spend their digital assets in real-time anywhere Mastercard is accepted, signalling a significant shift in the accessibility of blockchain technology for ordinary expenditures.
The MetaMask Card works with the Linea network, allowing users to convert their cryptocurrencies, such as USDC, USDT, and WETH, into fiat currency on the fly at millions of businesses worldwide.
This technology, developed in collaboration with Mastercard and Baanx, has the potential to open up new paths for cryptocurrency usage in places where traditional banking institutions may be less resilient.
LATAM Crypto companies in legal “grey zones, according to Bitso report
According to Bitso, Latin America has a diversified regulatory landscape for cryptocurrencies, with Argentina, Brazil, Colombia, and Mexico setting the standard.
This regulatory mosaic causes legal confusion for Bitcoin users, forcing some businesses to operate in “grey zones” where the legality of their activity is unclear.
The report “From Barriers to Bridges: How Blockchain and Stablecoins Can Remap Cross-Border Payments in Latin America” examines the issues that the region’s businesses face.
The report underlines that, while blockchain technology and stablecoins have disruptive potential, many businesses feel forced to traverse uncertain legal frameworks due to a lack of clear rules.
The lack of stated prohibitions does not reduce uncertainty, making it harder for businesses to fully adopt blockchain technology into their operations.
As a result, the complicated regulatory framework highlights the need for greater clarity in supervision and compliance throughout the area.
Argentina’s tight currency controls and restrictive rules have long impeded cross-border trade.
Domestic digital payments, on the other hand, have thrived, with platforms like Mercado Pago gaining over 12 million users and real-time payment systems like Transferencias 3.0 becoming increasingly popular.
Despite the lack of a complete fintech law, Argentina’s regulatory requirements are often less stringent, allowing businesses to operate while adhering to consumer protection laws, digital signatures, tax regulations, and anti-money laundering policies.
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