Welcome to Latam Insights, a compendium of the most relevant crypto and economic news from Latin America over the past week. In this week’s edition of Latam Insights, El Salvador continues buying bitcoin despite IMF’s requirements, the Argentine justice system orders freezing USDT for the first time, and a Brazilian congresswoman warns about the dangers of a national CBDC.
El Salvador’s Bitcoin Buying Spree Continues on Christmas Day—IMF Left Watching
El Salvador recently inked a deal with the International Monetary Fund (IMF) that stirred some buzz. The IMF nudged El Salvador to dial down its bitcoin agenda, which had been a hot potato in discussions. Post-deal, Stacy Herbert, the director of El Salvador’s Bitcoin Office, took to social media to clarify that BTC purchases would proceed at “an accelerated pace.”
The very day Herbert made her statement, El Salvador scooped up another 12 BTC. The next day, they grabbed one more bitcoin, followed by another 12 on Dec. 21, and they’ve been snagging 1 BTC daily ever since. The X account linked to El Salvador’s Bitcoin Office shared the festive acquisition on the social platform.
“Like a boss, El Salvador continued adding one BTC per day to our Strategic Bitcoin Reserve,” the X account boasted. “And we are still so early … wait until you see what we have in store for 2025!”
Also Read: El Salvador’s Proposal: Crypto for Global Settlements
Argentina Freezes $3.5 Million in USDT Linked to Rainbowex Amid Massive Seizure Operation
Argentine authorities have ordered Tether, the company behind USDT, to freeze $3.5 million in assets linked to Rainbowex, an alleged pyramid scheme that affected thousands in Argentina. This measure would be one of the first times the formal Argentine justice system interacts with Tether to complete an asset freeze order.
The action comes on the heels of a massive operation against individuals connected to Rainbowex’s operations. The coordinated procedure executed 22 search warrants and resulted in the detention of 10 individuals as part of a sweep in San Pedro. Also, the procedure prompted the issuance of two red alert international warrants for two Malaysian individuals.
USDT, centrally issued by Tether, can be blocked via blacklisting of the wallets holding the tainted currency. The involvement of the private sector was key to achieving this milestone, as exchanges like Lemon and companies like Chainalysis accompanied this effort with their technical support.
Brazilian Congresswoman Sounds Alarm on Drex CBDC Risks, Rejects Cash Elimination Bill
Julia Zanatta, a Brazilian Congresswoman, alerted about the possible end of physical money as the country advances in implementing drex, the national central bank digital currency (CBDC). In a recent interview, Zanatta explained that she is already planning to establish several backstops to stop this from happening, helping Brazilians maintain their current economic freedom.
Zanatta recently presented a bill to fight an already introduced bill that seeks to forbid the use of cash in Brazil, proposing to rely only on electronic transactions, and drex. The bill, introduced in 2020, would phase out money printing starting in 2025.
Zanatta opposes this project, stating that drex usage should be voluntary and not mandatory because it might become a tool for exerting control over Brazilians.
Source: Bitcoin
