Bolivia Sells Gold for Dollars, Argentina Bans Fintech Crypto, Fitch Upgrades El Salvador’s Credit Rating – Bitcoin News

Welcome to Latam Insights, a compendium of the most relevant crypto and economic development news from Latin America over the past week. In this edition, Bolivia passes a law to sell gold for dollars, Argentina’s central bank bans fintech companies from using crypto, and Fitch improves El Salvador’s credit rating.

Bolivia passes law to sell gold for dollars

Bolivia recently passed a law that will allow the government to sell up to 50% of its gold reserves in dollars, reducing the internal scarcity of dollars. The law empowers the government to negotiate the sale of 22 tons of gold out of the nearly 44 available in the local reserves.

The initiative had been presented back in 2021, but it was only recently saved and passed by Congress, which is dominated by the party of Bolivian President Luis Arce. Jorge Richter, a presidential spokesperson, explained the goal of a quick approval of the law. He stated:

The country has a tool so that these events and situations from the last days that we have known are not repeated, difficulties in the production of North American currency.

Almost all Bolivian banks had previously established a daily withdrawal limit of $300 for their users, and Bolivia’s central bank had to organize direct sales to satisfy the local demand for foreign currency.

Central Bank of Argentina bans Fintech companies from using crypto

On May 4, Argentina’s Central Bank issued a communication prohibiting certain fintech providers from using cryptocurrency assets or offering services related to digital assets or other assets “not regulated by the competent national authority and authorized by the Argentine Central Bank.” to their customers.

The measure will only affect fintech companies that offer direct payment accounts, inclusive Wow, MercadoPago, personal salary, DolarApp, Nubi, and MODO, among others. Bitcoin Argentina, a national NGO, rejected this measure, states that it “is surprising and unconsulted. It is not understood what goal the central bank is seeking by banning an activity which today is completely satisfactory and useful for the customers of the local stock exchanges.”

Fitch Ratings improves El Salvador’s credit rating

Fitch Ratings, one of the three major credit rating agencies, upgraded the credit rating of El Salvador, even with the use of bitcoin as legal tender. Fitch upgraded El Salvador’s rating from CC to CCC+, stating that this was the consequence of “the successful completion of the exchange and payment of significant global bond write-downs early in the year, and reflects Fitch’s view that another default event no longer appears likely.”

Salvadoran President Nayib Bukele celebrated the change, explaining that he couldn’t wait for Fitch to “upgrade it even more when we announce our 2024 budget surplus.”

What do you think about developments in Latin America this week? Tell us in the comments 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 spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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