This week, the LATAM cryptocurrency landscape once again demonstrated its dynamic nature.
El Salvador has decided to continue its Bitcoin purchases despite IMF warnings, while MetaMask has innovated by launching its crypto debit cards for Mexico, Colombia and Brazil.
El Salvador has revealed plans to continue buying Bitcoin, perhaps at a faster pace, despite a financing arrangement with the International Monetary Fund (IMF), which proposes to reduce its exposure to the cryptocurrency.
Stacey 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 increase its strategic reserves.
El Salvador signed a $1.4 billion loan deal with the IMF on Wednesday that includes a review of its Bitcoin rules, including the requirement that all tax payments be made in US dollars.
According to an IMF spokesperson, the anticipated legal amendment will make Bitcoin acceptance in the private sector voluntary.
Analysts believe the government’s effort to acquire more Bitcoin is a strategy to counter the negative opinion about the cryptocurrency following the agreement with the IMF.
MetaMask launches crypto debit card in Brazil, Colombia and Mexico
MetaMask introduces MetaMask Card in Brazil, Mexico and Colombia, marking 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, marking a significant shift in the accessibility of blockchain technology for general spending.
The MetaMask card works with the Linea network, allowing users to convert their cryptocurrencies, such as USDC, USDT and WETH, into fiat currency at millions of businesses around the world.
The technology, developed in collaboration between Mastercard and Banex, has the potential to open up new avenues for the use of cryptocurrencies in places where traditional banking institutions may be less flexible.
LATAM crypto companies are in legal “grey zone”, Bitso reports
according to bitsoLatin America has a diverse regulatory landscape for cryptocurrencies, with Argentina, Brazil, Colombia, and Mexico setting the standards.
This regulatory mosaic creates legal confusion for Bitcoin users, forcing some businesses to operate in a “grey zone” where the legality of their activity is unclear.
report “From Barriers to Bridges: How Blockchain and Stable Coins Can Re-map Cross-Border Payments in Latin America” examines the issues that businesses in the region face.
The report underlines that, while blockchain technology and stablecoins have disruptive potential, many businesses feel forced to navigate uncertain legal frameworks due to a lack of clear regulations.
The lack of perceived prohibitions does not reduce uncertainty, making it harder for businesses to fully adopt blockchain technology into their operations.
As a result, the complex regulatory framework highlights the need for greater clarity in supervision and compliance across the sector.
Argentina’s strict currency controls and restrictive regulations have long hindered cross-border trade.
On the other hand, domestic digital payments are thriving, with platforms like Mercado Pago gaining more than 12 million users and real-time payment systems like Transferanias 3.0 becoming increasingly popular.
Despite the lack of full fintech legislation, 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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