latam

Central Bank of Chile Studies Issuance of a Digital Currency

14/05/2022 by Idelto Editor

The Central Bank of Chile revealed it is studying how to issue a national digital currency, the digital peso. The bank issued a report titled “Issuance of a Central Bank Digital Currency in Chile,” where it explores the possibility of the creation of a central bank digital currency (CBDC) in the future, the mechanism it might use, and how it will consult all sectors of the economy on this issue.

Central Bank of Chile Considers CBDC Issuance

More banks in Latam are considering the issuance of their own central bank digital currencies (CBDCs) to take advantage of the different opportunities they might present. The Central Bank of Chile has just issued a new report studying the opportunities and drawbacks that the issuance of a digital peso might bring. The report, titled “Issuance of a Central Bank Digital Currency in Chile,” also studies the different forms that such a currency might take.

The document, authored by the payments group of the bank, was “framed in a context of increasing digitization of payments, which has been driven by rapid technological progress and the incorporation of new instruments and players in the payment market.” In this sense, the report concluded that:

The issuance of a CBDC would enable the benefits associated with digital transformation to be enhanced, while mitigating some of its risks. In particular, a CBDC could contribute to the development of a more competitive, innovative, integrated, inclusive and resilient payment system.

The report also calls for further analysis of the cost-benefit balance of issuing such a currency.

More Studies Needed

While many central banks in the world are studying and investigating the issuance of digital currencies, not many have moved to the execution phase. The document calls for more analysis and studies in this regard, as there are virtually no standards or best practice guidelines about how to proceed with the construction of such a project.

Digitization of the currency could also cause unforeseen negative impacts on the national economy, so any implementation in the future would have to be “carefully analyzed.” However, the central bank considers that this is the time to face this task and start working on its technical capabilities, and advance in the development of projects directed to test different implementations of the currency.

The bank also stated it will keep consulting and maintaining an open dialogue with all the institutions in the economic area. Brazil and Mexico are other countries in Latam also working to establish their own CBDC.

What do you think about the report issued by the Central Bank of Chile? Tell us in the comments section below.

Mercadolibre Gets Closer to Crypto With Investments in Paxos and Mercado Bitcoin

24/01/2022 by Idelto Editor

Mercadolibre, one of the biggest Latam-based unicorns, has announced strategic investments in two cryptocurrency exchanges: Paxos and Mercado Bitcoin. With these investments, the platform gets closer to cryptocurrency, having already bought bitcoin as a direct investment for its treasury, and offering the possibility of investing in crypto for its users in several countries in Latam.

Mercadolibre Puts More Money Behind Crypto

Mercadolibre, one of the biggest e-commerce platforms in Latam, with more than 70 million customers, announced strategic investments in two exchange platforms. The Latam-based unicorn announced on January 20th it had acquired shares of 2TM, the parent company of Mercado Bitcoin, one of the leading exchanges in Brazil, with three million customers. The company also invested in Paxos, a stablecoin issuer and blockchain infrastructure provider.

The amounts invested in each of these companies were not provided, but the company informed that the objective of the investments was to “stimulate the regional ecosystem, allowing it to offer increasingly relevant products and services to Latin American entrepreneurs and users, who are at the heart of its strategy.”

On this investment, Andre Chaves, Senior Vice President of Strategy and Corporate Development for Mercadolibre, stated:

2TM and Paxos share this vision and our conviction to continue innovating to offer solutions which improve people’s lives, generate value and drive the development of our region. We want everyone to be able to access the digital assets market in a simple and transparent way, this is our goal.

The Company in Crypto

The company’s relationship with cryptocurrencies is not new. Mecadolibre has been a cryptocurrency-friendly company for quite some time. The investment in the company Paxos was preceded by a partnership established last year, that allowed some customers of the company to invest in cryptocurrencies directly in Mercadolibre’s platform through Mercadopago, in Brazil. At that time, the company announced it would roll this service to other countries later this year.

Also, the company is one of the few in Latam that have officially reported owned crypto as part of its treasury. It announced it had bought almost $8 million in bitcoin (BTC) last May when it reported the financial results for Q1 2021. However, the giant has failed to allow customers to pay for goods and services, which is its main business, with cryptocurrencies, and it has not announced a possible date for the introduction of this functionality.

What do you think about Mercadolibre’s investment in Paxos and MercadoBitcoin? Tell us in the comments section below.

Argentinian Exchange Ripio Raises $50 Million in Latest Funding Round Led by DCG

22/09/2021 by Idelto Editor

Ripio, a Latin American (Latam) exchange headquartered in Argentina, raised $50 million in its latest funding round, led by Digital Currency Group (DCG). The exchange, which has a stronghold in countries like Argentina and Brazil, will use these new funds to further expand to new countries in the area and consolidate its spot as one of the pioneering companies in the crypto exchange business.

Ripio Gets $50 Million in Series B Funding Round

Ripio, one of the biggest cryptocurrency exchanges in Latam, has raised $50 million in its series B funding round, aiming to keep growing in the region. The funding round was led by Digital Currency Group (DCG), the famous New York-based cryptocurrency venture capital firm. The round also had the participation of bitcoin investor Tim Draper, Amplo (investors of Robinhood), Marcos Galperin (CEO of Mercado Libre), and Martin Migoya (CEO of Globant).

These funds will help Ripio to keep growing its brand in Latam, after having acquired Bitcointrade, of the most recognizable exchanges in Brazil, earlier this year. The expansion plan of the exchange includes further cementing its position in current markets while also expanding to other countries like Colombia, Mexico, and Uruguay later this year. About this, Ripio’s CEO, Sebastián Serrano, stated:

This announcement is for us a natural step that allows us to continue expanding and consolidating our products in the region, with the mission of expanding access to the crypto world, building simple tools and offering quality information and resources to facilitate the path to the new digital economy.

Crypto Is Still Fresh for Latam Markets

Ripio wants to capitalize on how new cryptocurrency is to Latam markets. Outside of already-saturated cryptocurrency strongholds like Venezuela, Argentina, and Brazil, the region seems to be an especially fertile ground for new business. Juan Mendez, brand chief of Ripio, stated the company is preparing to announce the acquisition of an exchange in Colombia. Colombia is a country where some crypto firms have made inroads, but it is still in its initial stages when it comes to crypto usage and adoption.

DCG is also confident that the exchange will keep growing in the future, giving access to the cryptocurrency ecosystem to the underbanked in the region. Jason Yacavone, chief investment officer of Digital Currency Group, stated:

Ripio is an important piece of the digital asset ecosystem and its work is essential to expand access to financial products throughout South America.

What do you think about Ripio’s latest funding round? Tell us in the comments section below.

Latin American Countries Eye Bitcoin Adoption After El Salvador Passed Bitcoin Law

15/06/2021 by Idelto Editor

A number of lawmakers in Latin American countries have expressed their interest in bitcoin following El Salvador passing the law making the cryptocurrency legal tender. The countries include Paraguay, Argentina, Panama, Brazil, and Mexico. Tonga and Tanzania have also reportedly expressed interest in bitcoin.

More Countries Eye Bitcoin Adoption

After El Salvador passed the bill making bitcoin legal tender alongside the U.S. dollar, a growing number of lawmakers in neighboring countries have either expressed their interest in making a similar move or put laser eyes on their Twitter profile pictures.

The laser eyes meme has swept through the bitcoin community since February with the underlying meaning that anyone donning the eyes is laser-focused on bitcoin’s price rising to $100,000. Politicians, celebrities, and investors have partaken and put laser eyes on their profile images.

Gabriel Silva, Member of Parliament in Panama, tweeted congratulating El Salvador when the bitcoin law was approved. “Good news for El Salvador who is teaching the government of Panama in entrepreneurship and technology. We have to think beyond the canal and free zones, betting on the knowledge economy, quality education for all and facilitating new businesses.” He emphasized:

This is important, and Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies. We will be preparing a proposal to present at the assembly.

Carlitos Rejala, a congressman and the National Deputy of Paraguay, has called for his government to take similar action to El Salvador. Putting laser eyes on his profile picture, he tweeted: “As I was saying a long time ago, our country needs to advance hand in hand with the new generation. The moment has come, our moment.”

Fábio Ostermann, an elected member of the Legislative Assembly in Rio Grande do Sul, Brazil, has also put laser eyes on his profile picture. Argentina’s deputy Francisco Sánchez also temporarily put laser eyes on his profile picture, tweeting, “I can’t believe it, but this is how it is.”

Commenting on the growing list of countries becoming interested in bitcoin after El Salvador’s bitcoin law passed, Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, tweeted last week:

First they ignore you, then suddenly Paraguay, Argentina, Panama, Brazil, El Salvador, Nicaragua embrace bitcoin.

Several lawmakers in Mexico also put laser eyes on their profile pictures, including Senator Indira Kempis, who replied to the tweet by Tyler Winklevoss with an emoji of the flag of Mexico. Moreover, Senator Eduardo Murat Hinojosa has announced plans to bring a regulatory proposal on cryptocurrencies before the national Legislative Branch. He tweeted last week:

I will be promoting and proposing a legal framework for cryptocurrencies in Mexico’s lower house.

Some other countries that have expressed interest include Tonga, a Polynesian country, and Tanzania, an East African country. President Samia Suluhu Hassan has called on the Tanzanian Central Bank to begin working on facilitating the widespread use of cryptocurrencies in the country. In Tonga, Lord Fusitu’a, Member of Parliament of the Kingdom of Tonga, is a bitcoin advocate. He has laser eyes on his Twitter profile picture and has attended a Twitter spaces meeting with bitcoiners to discuss how his country can benefit from the cryptocurrency.

El Salvador could set a trend of nations adopting bitcoin. JPMorgan recently said that “similarly situated” countries could follow El Salvador’s move to make bitcoin legal tender. Meanwhile, the International Monetary Fund (IMF) says it sees legal and economic issues regarding this move by El Salvador.

Do you think more countries will make bitcoin legal tender like El Salvador? Let us know in the comments section below.

Latam Based Exchange Bitso Gets Unicorn Status After $250 Million Funding Round

07/05/2021 by Idelto Editor

Bitso, one of the biggest cryptocurrency exchanges in Latam, has reached unicorn status after a funding round that managed to raise $250 million with the participation of some big names in the cryptocurrency world. The company announced it would use these resources to expand its operations and keep growing in its core markets, including remittances.

Bitso Reaches Unicorn Valuation After Series C Funding Round

Mexico-based exchange Bitso has become the first LATAM cryptocurrency unicorn, after getting a valuation of $2.2 billion on its Series C funding round. The round got participation from important names in the investing sphere, being led by New York-based privately-owned hedge fund Coatue Management LLC and Tiger Global, another top investment firm. The round managed to raise $250 million and included other investors like Pantera Capital and Paradigm.

The company declared that it would use these resources to strengthen its core business in Latam and expand to other markets. Bitso is in a very comfortable position in Latam, where it is very popular in certain countries. While making inroads to Argentina during the last cryptocurrency boom in that country, Bitso is especially strong in its home country, Mexico, where it is looking to take a significant part of the business of remittances in the area.

How Bitso Got Here

Bitso, founded in 2014, has gone through a long and winding road to get here. The company carried its early founding round circa 2016, getting an early investment of $2.5 million by Digital Currency Group, the company that owns Coindesk and Grayscale Investments. Its next influx came in its Series A funding round, which raised $15 million during October 2019, followed by another influx of $62 million in December 2020, which was led by Kaszek Ventures and QED Investors.

Bitso also stamped a partnership with Ripple, the cryptocurrency company, that allowed them to leverage Ripple’s liquidity for doing quick remittances. This made Bitso is the biggest exchange partner of MoneyGram for Mexican pesos-based remittances. The advantage of Bitso is that the percentage of banking users in the region is very low, so this has allowed them to grow pretty fast, taking advantage of how cryptocurrency works and its cheap costs for remittances.

But Bitso is not only about remittances in Mexico. The exchange is focusing to expand its reach to other Latam countries, and it has been elected as one of the approved crypto companies to conduct tests in Colombia while also recently launching operations in Brazil.

What do you think about Bitso reaching unicorn status? Let us know in the comments section below.