Latin American common currency will focus on agreements between Mercosur and BRICS countries Cryptocurrencies and ICOs

The president of Brazil, Luis Inácio Lula Da Silva, clarified the scope of the common currency that Brazil and Argentina are studying to issue in Latam. Lula Da Silva clarified that he believes that this currency will be used to settle cross-border payments between the two countries and also BRICS and Mercosur countries.

Lula clarifies intention of common Latin American currency

Luis Inácio Lula Da Silva, president of Brazil, has clarified the facts regarding the intention of Argentina and Brazil to create a common Latin American currency, which would later be extended to all of Latam. Upon his arrival in Buenos Aires for the CELAC summit of heads of state, Lula explained that the discussion will revolve around the launch of a coin for multilateral agreements between countries from different integration groups, including BRICS Y mercosur.

Lula da Silva fixed:

Why not create a common currency with the Mercosur countries, with the BRICS countries? I think that’s what’s going to happen. You can set a currency type for trading that is set by the central bank.

Lula also stated that he would prefer international trade transactions to always be settled in their countries’ native currencies to reduce dependence on the US dollar.

Fernando Haddad, Brazil’s economy minister, offered more information on the objectives of the two countries, explaining:

Trade is very bad and the problem is precisely the foreign currency, right? So we are trying to find a solution, something in common that can grow the trade.

More details

The president of Argentina, Alberto Fernández, also referred to the hypothetical currency in the same terms that Lula did. Fernandez clarified:

The truth is that we do not know how a common currency between Argentina and Brazil works, nor do we know how a common currency will work in the region. But what we do know is how the economy works with currencies to trade.

The joint statements by Fernández and Lula Da Silva went against the expectations that some had about the retail and mass nature that this currency would have, fueled by the statements that the Argentine Economy Minister, Sergio Massa, offered to the Financial Times.

Too, reports de O’Globo explain that a common currency memorandum to be signed by the two governments includes a clause to protect each country’s fiat currencies, the Brazilian real and the Argentine peso, from being substituted by this settlement-focused currency.

What do you think about the Latam settlement currency that is being discussed between Argentina and Brazil? Tell us in the comment section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as someone who was late to the game, entering the cryptosphere when the price spike occurred in December 2017. With a background in computer engineering, living in Venezuela and being impacted by the rise of cryptocurrencies on a societal level, offers a different point of view. about the success of cryptocurrencies and how he helps the unbanked and underserved.

image credits: Shutterstock, Pixabay, WikiCommons, Isaac Fontana / Shutterstock.com