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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, economist Steve Hanke calls for the dollarization of Argentina, Bitcoin City plans are still not formalized in El Salvador, and Venezuelan crypto watchdog Sunacrip is reportedly involved in mass layoffs.
Steve Hanke, economist and professor of applied economics at Johns Hopkins University, has supported the proposal to dollarize the Argentine economy in order to sort out the financial crisis in the country.
In a tweet issued on April 25, Hanke wrote tired:
By my measure, the Argentine peso has depreciated against the USD by 52% since January 1, 2022. Argentina needs to dump the peso and dollarize now.
Hanke’s proposal coincides with what Javier Milei, one of the strongest presidential candidates according to the polls, is presenting in his campaign plans, considering dropping the Argentine peso and adopting the US dollar as a solution to the inflation and devaluation escalation facing the country. Hanke also criticized the country’s debt to the International Monetary Fund (IMF).
Formal plans for Bitcoin City, the cryptocurrency-focused city that will be built in El Salvador in part with funds from the still unreleased “Vulcano bonds,” have still not reached public institutions in El Salvador. A document posted to social media on April 26 shows that the Ministry of Public Works has no project called Bitcoin City, an initiative presented by Salvadoran President Nayib Bukele in November 2021.
The “Escape to El Salvador” team, an organization promoting relocation to the country, clarified that these plans were still not introduced to the Ministry of Public Works, but that the project was still ongoing.
Sunacrip, the Venezuelan cryptocurrency watchdog, has fired more than 400 workers this week, according to local sources. The crypto watchdog had a payroll of 600 workers, who are affected by the current cryptocurrency-related corruption investigation. 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 appointed a commission to review the actions of the institution, but there have been no reports if the organization will be terminated, or if it will continue with a different organizational structure.
What do you think about developments in Latin America this week? Tell us in the comments section below.
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