USDT Dominates the Brazilian Market
The Brazilian Tax Authority (RBF) has recognized the increasing presence of stablecoins in the country’s cryptocurrency market. Data from exchanges show that stablecoins such as USDT, USDC, and BRZ are being used in the majority of transactions. The RBF has stated that this trend deserves attention as it could have significant implications for the tax and regulatory landscape of cryptocurrencies in Brazil. Tether’s USDT, the largest stablecoin by market cap, is particularly popular and has been involved in over 80% of all transactions since 2019, amounting to more than $54 billion.
Tether CEO Paolo Ardoino commented on the rising adoption of USDT in Brazil, saying that when a product solves real-world problems, it naturally becomes widely used.
Bukele’s Administration Accused of Embezzling Funds for Bitcoin Projects in El Salvador
An investigation by the Organized Crime and Corruption Reporting Project (OCCRP) has alleged that President Nayib Bukele’s administration in El Salvador misappropriated funds from Covid-19 relief loans for Bitcoin projects. The report claims that out of a $600 million loan given by the Central American Bank for Economic Integration (CABEI), $425 million was used for other purposes, including financing the process of making Bitcoin legal tender in the country.
Venezuelan Cryptocurrency Exchanges Launch New Association
A group of Venezuelan cryptocurrency exchanges has formed Acincrip, a new association aimed at establishing new policies following a seven-month industry shutdown. The shutdown was initiated after the intervention of national cryptocurrency regulator Sunacrip and the arrest of its former head, Joselit Ramirez. Acincrip includes four major exchanges: Cryptobuyer, AFX, Amberes Coin, and Crixto. The association’s president, Eleazar Colmenares, stated that they have cooperated with Sunacrip’s investigations but did not provide details on their plans to regulate the cryptocurrency market in Venezuela.
Hot Take: Latin America Sees Growing Adoption of Stablecoins and Crypto Associations
Welcome to Latam Insights, where we bring you the latest news on crypto and economic developments in Latin America. This week, we saw the dominance of stablecoins in the Brazilian market, with USDT leading the way. Stablecoins like USDT are being used in a majority of transactions, raising regulatory concerns. In El Salvador, President Bukele’s administration is facing accusations of misusing funds meant for Covid-19 relief loans for Bitcoin projects. Meanwhile, Venezuelan exchanges have come together to form Acincrip, a new association aimed at addressing regulatory challenges in the country’s crypto industry. Stay tuned for more updates on the evolving crypto landscape in Latin America.
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