CRYPTO LATAM UPDATE OCTOBER 2024

Latin America is a crucial market for Oxido Solutions, with a growing number of professional and institutional investors in Brazil, Colombia, and other South American countries using our crypto trading bot solutions. To better serve this market, we closely monitor local developments. Here’s the latest crypto news from LATAM:

🇨🇴 Nexo Joins Colombia’s Fintech Association
Nexo, a prominent global crypto lending platform, has taken a significant step by joining Colombia’s Fintech Association. This move is part of Nexo’s broader strategy to expand in Latin America, as the country becomes a key market for fintech innovation. Through this partnership, Nexo aims to further integrate crypto-powered financial services into the growing Colombian market.

Antoni Trenchev, co-founder of Nexo, commented, “We are thrilled to collaborate with Colombia’s fintech leaders to enhance access to decentralized financial services across the region.”

🇬🇹 Worldcoin Expands Digital ID Services in Guatemala
Worldcoin has expanded its World ID verification service to Guatemala, using orb technology to address the growing concern over online bots and fake identities. As of September 25, Guatemalan users can verify their digital identity by visiting local orb locations and downloading the World App. The initiative is aimed at enhancing security in online interactions, where 83% of Guatemalans expressed concern over the authenticity of users. This expansion highlights the rising importance of secure digital identification in an increasingly online world.

🇧🇴 Bolivia’s Crypto Transactions Surge After Ban Lift
Since Bolivia lifted its ban on cryptocurrencies in June 2024, the country has experienced a rapid increase in crypto transactions. The Central Bank of Bolivia (BCB) reported that trading volumes doubled to $15.6 million between July and August. Stablecoins, in particular, are gaining popularity as a hedge against inflation and for facilitating e-commerce and cross-border payments. BCB President Edwin Rojas said, “The use of virtual assets is a key step towards modernization and global economic integration.”

🇧🇷 Brazil’s Drex CBDC Project Integrates DeFi
Brazil is advancing its Drex central bank digital currency (CBDC) project by incorporating decentralized finance (DeFi) features. Currently in its second pilot phase, Drex is testing use cases like real estate tokenization and creating liquidity pools for public securities trading. By integrating DeFi, the Brazilian Central Bank aims to improve transaction efficiency and enhance financial inclusion. However, regulatory challenges have delayed the full launch to early 2025. This integration of DeFi technologies is positioning Brazil as a leader in digital finance innovation.

🇵🇷 Osmo Wallet Expands Services to Puerto Rico
Osmo, a Latam-focused Bitcoin and Lightning Network wallet, has expanded its services to Puerto Rico. The platform now enables users to top up their wallets with local currencies and seamlessly convert between fiat, Bitcoin, and USDC. By making crypto more accessible and functional for daily transactions, Osmo aims to support financial inclusion and ease cross-border payments for Puerto Ricans.

🇧🇷 Brazil Ranks High in Global Crypto Adoption Index
Brazil continues to lead the way in Latin America, ranking 10th in the 2024 Chainalysis Global Crypto Adoption Index. The report highlights Brazil’s strong performance in both centralized services and DeFi, underscoring the country’s growing importance in the global crypto space. Other Latin American countries, including Venezuela, Mexico, and Argentina, also made it into the top 20.

🇦🇷 Binance Expands to Argentina
Binance has officially entered the Argentine market, securing its 20th virtual asset service provider (VASP) license on October 1. This regulatory approval allows Binance to offer its crypto services in Argentina, a country plagued by economic instability and high inflation. The expansion offers Argentinians access to more financial alternatives and positions Binance as a major player in the region’s crypto ecosystem.

🇻🇪 Venezuelan Opposition Leader Proposes Bitcoin Reserve
Venezuelan opposition leader María Corina Machado has proposed creating a national Bitcoin reserve to safeguard the country’s wealth amid hyperinflation. In a recent campaign, Machado highlighted how Bitcoin could serve as a stable store of value for Venezuelans, protecting them from the rapid devaluation of the bolívar. She also launched a Bitcoin donation campaign to support Venezuela’s democratic efforts.

🇺🇾 Uruguay Passes Cryptocurrency Law
Uruguay has passed its long-debated cryptocurrency law, positioning itself as a progressive leader in the Latin American crypto space. The law establishes the Central Bank of Uruguay as the primary regulator for crypto services, providing a legal framework for virtual assets. This regulatory clarity is expected to encourage more innovation and investment in Uruguay’s crypto sector.

🇸🇻 IMF Continues to Pressure El Salvador on Bitcoin Adoption
El Salvador continues to face pressure from the International Monetary Fund (IMF) over its Bitcoin adoption strategy. While President Nayib Bukele remains committed to making Bitcoin legal tender, the IMF has urged El Salvador to narrow the scope of its Bitcoin law and improve regulatory oversight. Despite criticism, Bukele maintains that Bitcoin adoption has brought significant investment and boosted tourism in the country.

🇲🇽 Circle’s USDC Stablecoin Expands in Mexico and Brazil
Circle has expanded its USDC stablecoin offering in Mexico and Brazil by integrating it with their respective national payment systems—SPEI in Mexico and PIX in Brazil. This move allows for faster and cheaper cross-border transfers, eliminating the need for lengthy wire transfers. Circle’s expansion is expected to enhance business operations and remittances across Latin America, particularly in the U.S.-Mexico corridor.

🇦🇷 Wealthiest Man in Argentina Endorses Bitcoin
Marcos Galperin (image), the founder and CEO of Mercado Libre, recently endorsed Bitcoin as a hedge against government intervention. Galperin, who invested in Bitcoin as early as 2013, emphasized the importance of Bitcoin’s independence from government-controlled currencies, particularly in countries like Argentina facing fiscal deficits and economic instability.

🇧🇷 Ripple and Mercado Bitcoin Partner for Cross-Border Payments
Ripple has partnered with Mercado Bitcoin to launch a new crypto-enabled cross-border payments system between Brazil and Portugal. The partnership aims to improve transaction speed and cost for institutional clients, with plans to extend services to retail users in the near future. Mercado Bitcoin CEO Jordan Abud noted that this collaboration will further internationalize their services and streamline cross-border payments for businesses.

Latin America’s crypto ecosystem continues to grow at a rapid pace, with major developments in Colombia, Brazil, Argentina, and beyond. As the region embraces regulatory advances, digital identity verification, and CBDC innovations, the future of crypto in Latin America looks brighter than ever. Stay tuned for next month’s update from Oxido Solutions as we continue to track the exciting developments in the LATAM crypto markets.

These developments underscore Latin America’s growing role in the global crypto market. Stay tuned for more insights from Oxido Solutions in next month’s update.