Welcome to Latam Insights, a compendium of the most relevant news on crypto and economic development in Latin America during the last week. In this issue: Inflation in Argentina tops 100%, El Salvador issues its first digital asset licenses, and the cryptocurrency-related corruption investigation in Venezuela is still ongoing.
Argentina registers 104.3% inflation in March, the highest in Latam
The National Institute of Statistics and Censuses of Argentina published inflation figures for March 2023, checking in an increase of 7.7% month-over-month. This figure is higher than the 6.6% registered during February, produced by an increase in education and food and beverages.
With this number, Argentina registers inflation levels of 104.3% year-on-year, being the highest inflation level in Latam according to the regional index. estimates. Analysts are concerned about the evolution of this variable, given that not even government price control programs have been able to stop it.
Soledad Pérez Duhalde, an Argentine economist, fixed:
The inflation data for March is terribly negative news. Inflation is rampant in Argentina, and without a program and without anchors it will be very difficult to break this trend.
El Salvador issues its first digital asset licenses
The government of El Salvador delivered the first digital asset licenses in the country, allowing cryptocurrency exchange and custody providers to issue digital securities in a regulated environment. The first company to receive the license was Bitfinex Securities El Salvador, a newly incorporated company that will operate independently from Bitfinex, the well-known cryptocurrency exchange.
According to statements by Bitfinex CTO, Paolo Ardoino, this represents a milestone that will allow companies to access the digital market to raise capital, among other functions. Ardoino fixed:
It means that a whole range of entities, from small businesses to governments, can raise capital in a regulated environment and take advantage of a class of investors who are extremely comfortable with crypto assets and tokenized securities, representing a market of more than $ 1 trillion with a peak of 3 trillion dollars.
Two more licenses were also granted grantedone for E4, a company founded by Strike founder Jack Mallers, and Ditobanx, a Salvadoran startup.
Investigation of corruption of Venezuelan cryptocurrencies continues
The oil-related cryptocurrency corruption investigation, allegedly involving the use of cryptocurrencies tied to oil sales, continues to evolve in Venezuela. The existence of Sunacrip, Venezuela’s cryptocurrency watchdog, is reportedly at risk.
Former employees of the institution. explained that all available staff had been fired without justification, which has led to speculation about the future of the institution. In addition, the logo of the institution has been removed from the building where its offices were.
As a consequence of this investigation, all registered Bitcoin mining farms were ordered to cease operations on March 15, with miners complaining of significant losses as a result of this decision.
What do you think about events in Latin America this week? Tell us in the comment section below.
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