Latin America

Ecuadorian Presidential Candidate Proposes a National Cryptocurrency but It Won’t Replace the Dollar

18/01/2021 by Idelto Editor

An Ecuadorian presidential candidate hinted at creating a cryptocurrency in the country as part of its government agenda. Giovanny Andrade said that the national crypto aims to “facilitate” transactions across the country.

Crypto Could Be Backed by Gold

During an interview with Primicias, Andrade, representing the Union Ecuatoriana party, believes its cryptocurrency idea is a crucial part of his country’s proposals. However, he doesn’t want to ride off from Ecuador’s dollarized economy:

We are looking at ways to create an Ecuadorian cryptocurrency. This does not mean that we are going to escape from dollarization. We must support dollarization.

The Ecuadorian-Chilean Mining Chamber also claimed that a series of investors want to allocate $320 million to finance a “Latin American gold refinery.” He also said that such cryptocurrency is backed by the yellow metal gold, like Venezuela’s petro with oil.

Andrade continued to talk about the national crypto plans on his agenda in case he gets elected on February 7, 2021:

“It is essential that we create the cryptocurrency for all the internal benefits within the country, such as internal transactions. This would work very well for Ecuador.

Could the Hypothetical Ecuadorian Cryptocurrency Be Another Venezuelan Petro?

Dollarization in Ecuador has been a sensitive topic in the public discussion. In 1999, the country adopted the dollar as its official currency. All of this happened within the context of a strong economic and inflationary crisis.

Jamil Mahuad, the then-president of Ecuador, was dismissed from his duties in January 2000, since political parties blamed him for unleashing the economic crisis. However, no president has been able to remove dollarization’s policy.

In terms of the crypto industry, the Latin American country is not a well-known player within the regional sphere. However, Ecuador has been showing some interest in blockchain adoption in the country’s banking and dairy sectors.

What do you think about a possible Ecuadorian cryptocurrency backed by gold? Let us know in the comments section below.

Crypto Industry’s Favorite Messaging App Telegram Surpasses 500 Million Active Users

13/01/2021 by Idelto Editor

Telegram, a popular messaging app within the cryptocurrency space, surpassed 500 million monthly active users during the first week of January, according to Telegram chief executive officer Pavel Durov.

In the last 72 hours, said Durov, the app has seen a massive surge in new users, with an additional 25 million people signing up to use the platform. These new users are coming from all around the world, with the majority – 38% – drawn from Asia.

Some 27% are coming from Europe, 21% from Latin America, and 8% from the Middle East and North Africa (Mena region). Around 200 million people used Telegram in 2018, meaning user growth has exceeded 150% over two years.

Telegram may have benefited from changes to the privacy policy at rival Whatsapp. Recent updates to Whatsapp’s privacy policy require that users share their personal information with parent firm Facebook or stop using the service altogether.

These changes are believed to have prompted users uncomfortable with sharing more of their personal data with Facebook to leave Whatsapp, and join privacy-centric competitors such as Telegram or Signal.

Unlike other competing messaging apps, Telegram does not share personal data and offers encrypted chats.

Posting on his personal Telegram channel on Jan. 12, Durov said:

People no longer want to exchange their privacy for free services. They no longer want to be held hostage by tech monopolies that seem to think they can get away with anything as long as their apps have a critical mass of users.

The Telegram CEO added that “with half a billion active users and accelerating growth, Telegram has become the largest refuge for those seeking a communication platform committed to privacy and security.”

In 2020, Telegram reported new user sign-ups of 1.5 million each day, a far cry from the current influx of people joining the platform. “We’ve had surges of downloads before, throughout our 7-year history of protecting user privacy. But this time is different,” noted Durov.

Until now, all services on Telegram have remained free. However, Durov announced in December that some services may now be monetized. He said additional functions will appear for “business teams and users with advanced needs” and those features will be paid because they are “resource-intensive”. Ordinary users will continue to use Telegram for free, he emphasized.

Telegram attempted to launch its own cryptocurrency called Gram, through the TON blockchain platform, but was blocked by the U.S. Securities and Exchange Commission. That left Pavel Durov, who had raised $1.7 billion from select investors for the project, saddled with a debt of $1.2 billion and $18.5 million in penalties.

Now some investors in TON are preparing a lawsuit against Durov to try and force the businessman “to sell part of Telegram or the entire company and pay off the investors, because he spent money on Telegram,” according to a Forbes report. Durov allegedly spent $500 million of the TON money to upgrade Telegram, something investors claim was not part of the original deal.

What do you think about the influx of new users at Telegram? Let us know in the comments section below.

Chilean Court Orders Two Major Banks to Keep Open Checking Accounts of Crypto Exchange Buda

05/01/2021 by Idelto Editor

Chile’s Free Competition Defense Court (TDLC) ruled in favor of the Latin American cryptocurrency exchange Bud after their checking accounts were closed by two major banks in the midst of a lawsuit related to a Ponzi scheme unrelated to the exchange.

Chilean Court Rejected Petitions From Two Banks to Keep Checking Accounts Closed From Crypto Exchange Buda

According to Diario Financiero, the TDLC decided that Banco Itaú and BancoEstado should keep open Buda’s bank accounts, which were shut down in 2018 during an investigation of a bogus company named Terra Finance that turned to be a scam.

The lawsuit filed by four victims of the scheme — defrauded with a total amount of 100 million Chilean pesos ($200,000 approximately) — said that they were users of the crypto exchange. At that time, Banco Itaú backed its decision by claiming that Buda allowed the usage of its platform for bogus companies like Terra Finance indirectly and did nothing to stop it:

“Buda is indirectly allowing the use of Itaú’s systems by other cryptocurrency exchanges, of recognized risk, without being able to do anything about it.”

However, the Chilean court didn’t consider strong enough such claims and issued the following resolution on the matter:

The new information presented does not undermine the serious presumption of the right that is claimed or of the facts denounced in the lawsuit.

Legal Battle Is Still Alive

Speaking with the local media outlet, Samuel Cañas, Buda’s chief legal officer, said:

The bank has not been able to present sufficient information to dismiss the serious presumption of acts that threaten free competition that the Court determined to grant the precautionary measure in favor of Buda.com.

But the legal battle had not ended, said Guillermo Torrealba, Buda’s CEO, since the lawyers told him that there is still 1 year left. Still, he pointed out that the exchange is going “on the right path,” as four of five judges voted in favor of Buda, instead of the three votes they got in the last audience.

What do you think about the decision of the Chilean court? Let us know in the comments section below.

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Colombian Financial Watchdog Says Local Firms Can Use Capital to Buy Bitcoin

05/01/2021 by Idelto Editor

The Superintendency of Corporations in Colombia has explained in an official note that companies in the country are legally allowed to buy cryptocurrencies, specifically bitcoin (BTC), to inject capital as long as they abide by local regulations.

Colombian Watchdog: Local Firms Can Use Capital to Buy Bitcoin if Companies Demonstrate Tokens Are ‘Intangible Assets’

According to the publication, the Colombian watchdog pointed out that although crypto assets usage in the financial sectors is “still” not regulated, there are no legal prohibits to inject capital via bitcoin (BTC) – the only crypto asset mentioned in the document.

However, they clarified the tokens should meet the criteria of “intangible assets,” according to the definition granted by the country’s tax watchdog to cryptocurrencies, Directorate of National Taxes and Customs (DIAN), which reads as follows:

From the patrimonial point of view, as these currencies correspond to intangible assets, capable of being valued, they form part of the patrimony and can lead to the obtaining of a (presumptive) income. According to the above, it can be concluded that virtual currencies are not money for legal purposes. However, in the context of mining activity, insofar as they are received in exchange for services and/or commissions, they correspond to income and, in any case, to goods that can be valued and generate income for those who obtain them as from be part of your patrimony and take effect in tax matters.

But the superintendency still warns Colombian companies who handle cryptos such as bitcoin should be aware of the “high risks” that it carries and “the lack of local of regulation that surrounds it.”

Companies Are Not Under Special Regulations When Converting Capital to Bitcoin

Moreover, the watchdog calls firms to abide by the principles of good faith and loyalty with their businesses when they deal with cryptocurrencies. They’re still legally liable in the case that crypto’s value suffers sudden value depreciation.

In fact, the Superintendency of Corporation reminds local companies that converting capital to bitcoin doesn’t grant them special regulations.

In the document, the Colombian entity mentioned the approval of a pilot program by the country’s government on September 22, 2020, that calls companies to test crypto transactions within the context of a regulatory sandbox approved by the superintendence.

What do you think about the current stance of local Colombian authorities towards cryptos? Let us know in the comments section below.

The post Colombian Financial Watchdog Says Local Firms Can Use Capital to Buy Bitcoin appeared first on Bitcoin News.

Major Latin American University Launches Specialization Featuring Crypto-Related Topics

18/12/2020 by Idelto Editor

One of the biggest and most laureate universities in Latin America approved the launch of a Financial Engineering specialization course, whose modules cover crypto and blockchain-related subjects, marking it a historic landmark across the region’s educational sector.

Mexico’s Biggest University Is Set to Teach Crypto Topics on Brand-New Specialization

According to the official announcement in its monthly bulletin, the National Autonomous University of Mexico (UNAM) said that the new course would be available for both full-time and part-time students, with a duration of two semesters and four semesters, respectively.

The objective of the course reads as follows:

Graduates will be able to evaluate the profitability of public and private companies, develop financing strategies; design, develop and implement innovative financial instruments and processes; design investment portfolios, measure financial risk, among others.

However, the announcement didn’t provide full details on which subtopics will be dedicated to crypto matters. Still, press reports, citing Eloisa Cadenas, CEO of Mexico-based CryptoFintech, pointed out bitcoin and blockchain technology development as topics discussed within the course.

The UNAM clarified that Financial Engineering is aimed at those who have completed a degree in Engineering, Mathematics, Actuary or graduated from related careers in Physical Mathematical Sciences and Engineering.

The inception of crypto-related topics into the university marks the debut at higher-level educational institutions in Latin America. The course is not a diploma course, as it’s a specialization for those who already earned a degree.

UNAM’s Previous Flirting With Blockchain Topics

But this is not the first time that the Mexico City-based university gives room to blockchain-related topics within their academic curriculum.

On August 20, 2020, the UNAM’s Continuing Education Division of the Faculty of Accounting and Administration offered a diploma course in Financial Technologies, which covered fintech, law, cryptocurrencies, and blockchain topics.

According to Webometrics 2020-2, UNAM is the second-best university in Latin America, behind the University of Sao Paulo. The Mexican university is also known for being the educative institution where all three nation’s Nobel laureates — Alfonso García Robles, Mario Molina, and Octavio Paz — completed their studies.

What are your thoughts on this Mexico’s university announcement? Let us know in the comments section below.

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