Javier Milei Wins Runoff Election, Reaffirms Intention of Ending the Central Bank in Argentina
Javier Milei, a libertarian candidate, has emerged as the new president-elect of Argentina after winning the runoff election against Economy Minister Sergio Massa. Milei secured 56% of the popular vote. As part of his campaign, Milei proposes reducing the size of the state by eliminating several ministries, including the Central Bank of Argentina. He believes that the central bank is a “scam.” His plan also involves dollarizing the country to address the high inflation rates, which have exceeded 140% annually. Amid rumors suggesting a change in his stance, Milei’s office clarified that the closure of the central bank is non-negotiable.
President of the Central Bank of Brazil: Digital Real to Bring New Business Models
Roberto Campos Neto, the president of the Central Bank of Brazil, has expressed optimism about the digital real (drex) and its potential impact on business and financial transactions. According to Campos Neto, the programmability of drex will enable the development of new applications that cannot be supported by existing banking infrastructure. He emphasizes that drex will offer programmable payments, faster transactions, peer-to-peer transfers, increased transparency, and enhanced security. Campos Neto also highlights the significance of tokenization, which will enable the registration of goods using drex without the need for a public notary.
Brazilian Senate Might Approve a Foreign Crypto Purchases Tax
The Committee of Economic Affairs of the Brazilian Senate has approved a bill that proposes taxing cryptocurrency purchases made through foreign exchanges. Under Bill 4,173/2023, a 15% fee will be imposed on cryptocurrency purchases processed by exchanges operating outside Brazil. This bill primarily targets exchanges that operate within the country but currently avoid direct taxation because their operations occur overseas. The tax will be applicable when customers exchange their crypto assets for Brazilian reals. To become law, the bill must be approved by the Senate plenary and receive presidential sanction.
Hot Take: Latin America’s Crypto and Economic News
Welcome to Latam Insights, where we bring you the most relevant crypto and economic news from Latin America. In Argentina, libertarian candidate Javier Milei’s victory in the runoff election strengthens his goal of eliminating the central bank to address the country’s economic challenges. In Brazil, the introduction of the digital real opens up new possibilities for business models and the tokenization of assets. However, the Brazilian Senate may approve a bill to tax cryptocurrency purchases made through foreign exchanges, aiming to regulate the industry and ensure taxation on transactions. Stay informed by signing up for our Latam newsletter!
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