Welcome to Latam Insights, a compendium of the most relevant crypto and economic development news from Latin America during the last week. In this issue, economist Steve Hanke calls to dollarize Argentina, Bitcoin City plans are still not formalized in El Salvador, and Venezuelan crypto watchdog Sunacrip is allegedly involved in mass layoffs.

Steve Hanke Proposes to Dollarize Argentina

Steve Hanke, economist and professor of applied economics at Johns Hopkins University, has favored the proposal of dollarizing the Argentine economy in order to put order to the financial crisis of the country.

In a tweet issued on April 25, Hanke stated:

By my measure, the Argentinian peso has depreciated against the USD by 52% since Jan 1, 2022. Argentina must dump the peso and dollarize now.

Hanke’s proposal coincides with what Javier Milei, one of the strongest presidential candidates according to polls, is presenting in his campaign plans, considering ditching the Argentine peso and adopting the U.S. dollar as a solution to the inflation and devaluation escalade that the country is facing. Hanke also criticized the country’s debt with the International Money Fund (IMF).

Bitcoin City Plans Still Not Registered In El Salvador

Formal plans for Bitcoin City, the cryptocurrency-focused city that would be built in El Salvador in part with funds coming from the still unreleased “Volcano bonds,” have still not reached public institutions in El Salvador. A document posted to social media on April 26 shows that the Public Works Ministry has no project with the Bitcoin City name, an initiative that was presented by Salvadoran President Nayib Bukele on November 2021.

However, the “Escape to El Salvador” team, an organization that promotes moving to the country, clarified that these plans were still not introduced to the Public Works Ministry, but that the project was still ongoing.

Venezuelan Cryptocurrency Watchdog Lays Off Hundreds of Workers

Sunacrip, the Venezuelan cryptocurrency watchdog, has fired more than 400 workers this week, according to local sources. The crypto superintendence had a payroll of 600 workers, that are being affected by the current cryptocurrency-related corruption probe. The former head of Sunacrip, Joselit Ramirez, is currently under arrest for his alleged involvement in the so-called PDVSA-crypto corruption scheme.

The institution was intervened by Venezuelan President Nicolas Maduro on March 17, who named a commission to review the actions of the institution, but there have been no reports about if the organization will be terminated, or if it will continue with another organizational structure.

What do you think about the developments in Latin America this week? Tell us in the comment section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Civil servants including public service personnel, public institution personnel and personnel of state-owned units at all levels in the city will be compensated in digital RMB payment.

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US Bitcoin Corp tentatively settles with Niagara Falls to restart mining ops, must comply with noise reduction, permits and fees.

US Bitcoin Corp, a bitcoin mining company which has been operating a mining facility in the City of Niagara Falls, has reached a tentative agreement with the city to restart operations according to a report.

The miner, which recently agreed to a merger with Hut 8, putting both companies under the umbrella of Hut 8 Corp., will have to comply with strict measures in order to begin operations which were halted in March by a state supreme court judge. The judge found that the operators of the facility were in contempt of another judge’s court order.

Under the agreement, US Bitcoin would be required to comply with a series of standards for noise reduction and permit applications. These include limiting noise production from the facility to no more than 65 decibels and submitting completed applications for all permits needed to comply with the city’s new “high energy usage overlay district,” the report details.

They would also have to compensate the city in several ways, including paying an upfront, non-refundable $50,000 fee upon execution of the agreement. In addition to the $50,000 upfront fee, US Bitcoin would be required to pay the city a $100,000 compliance fee within 30 days of the agreement’s effective date.

The company would also be required to reimburse the city for $180,000 in attorney fees and costs tied to its enforcement action against the company, as listed in the agreement.

The Niagara Falls City Council still has to approve the agreement.

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Paris Blockchain Week celebrated its fourth edition in spring 2023 against a backdrop of riots, protests and general civil malaise. The builders in the Bitcoin (BTC), crypto, and Web3 spaces were unfazed by protesters chanting and dancing on the doorstep of the conference venue. 

The event took place against the backdrop of ongoing protests in Paris and worsening macroeconomic conditions in France. Many attendees expressed concern about the impact of these factors on the future of the blockchain and crypto industry, particularly in Europe.