Latam Insights: Argentina Announces National Digital Currency While Peso Sinks, Volcano Energy Launches Lava Pool
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: The Argentine government announces a national digital currency project, Volcano Energy launches Lava Pool, the first Salvadoran Bitcoin mining pool, and a resolution that allows investment funds to invest in cryptocurrency comes into effect in Brazil.
Argentine Economy Minister Sergio Massa Announces National Digital Currency
Sergio Massa, a presidential candidate and current economy minister of Argentina, proposed launching a national digital currency during the first debate before the presidential elections. As part of his campaign, Massa stated that this new digital currency would be issued alongside a tax reduction plan to move the Argentine economy to the formal sector.
During the debate, Massa stated:
We are going to launch the Argentine digital currency. Just as your children propose in their platform economy the possibility of trading with their cell phone or card, we are going to do it globally for all of Argentina.
Later, Massa declared he would introduce this currency into Congress quickly to adopt the national digital currency. Sources from the economy ministry supported this move, stating that implementing a national digital currency would bring “more freedom and autonomy when carrying out everyday transactions, with easy use and access, including non-digitized or unbanked sectors, and [it] avoids financial bureaucracy.”
However, after this announcement, the Argentine peso has fallen to record lows, reaching 885 pesos per dollar in its informal “blue” exchange rate on Sunday.
Volcano Energy Launches Lava Pool
Volcano Energy, a green power Bitcoin mining company, launched the first Salvadoran mining pool, called Lava Pool. The platform, launched in partnership with Luxor Technologies, a mining tech provider, will be used by the 241-megawatt (MW) renewable energy mining facility currently in construction in Metapan.
Volcano Energy CSO Gerson Martinez emphasized that Lava Pool was an “example of El Salvador’s first mover advantage as a nation-state in the Bitcoin ecosystem.”
He stated:
Our vision is to create a vertically integrated energy and bitcoin mining company whose value is accretive to investors and to all Salvadoran citizens.
Brazilian CVM Now Allows Investment Funds to Invest in Crypto
Resolution 175, a regulation issued by the Brazilian Securities and Exchange Commission (CVM) last year, came into effect on October 2, allowing investment funds to allocate part of their portfolios in cryptocurrencies. Analysts expect interest in cryptocurrency to increase, causing institutions to pursue more crypto-related investment opportunities.
However, the resolution establishes limits for these investments, allowing funds to allocate just 10% of total funds to cryptocurrency. Also, these digital assets have to be acquired from exchanges approved by the Brazilian Central Bank or international regulatory bodies.
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