This week’s Latam Insights covers a Brazilian bill to enable investment funds to buy cryptocurrencies, Tether’s plans for a skyscraper in El Salvador, and the decline of crypto remittances in the country. Amid significant developments, established traditional methods remain dominant in remittance transactions, showing the complexities of crypto adoption.
In this edition of Latam Insights, we explore key developments in cryptocurrency and economics from Latin America over the past week. A proposed bill in Brazil aims to allow investment funds to invest in cryptocurrencies, Tether announces plans for a skyscraper in El Salvador, and the uptake of crypto remittances in El Salvador declines amid traditional methods’ preference.
Brazilian MP Adriana Ventura has introduced a draft bill that could restore regulatory approval for investment funds to purchase cryptocurrencies. This effort is intended to cater to the increasing interest from such funds, providing them with regulatory guidelines and allowing investor diversification. Currently, institutional investors in Brazil face restrictions on direct investment in crypto assets, despite the popularity of retail crypto trading in the region.
Tether’s CEO, Paolo Ardoino, elaborated on the company’s plans to construct a 70-story skyscraper in El Salvador, named Tether Tower. He emphasized that this infrastructure investment reflects confidence in President Bukele’s vision for the crypto sector and highlights the country’s growth potential. Ardoino stated, “The tower will be a symbol of prosperity and growth of the country” and noted Tether’s commitment to carefully choosing its branding placements.
In contrast, crypto remittances in El Salvador have not gained traction, which undermines the country’s intended use of Bitcoin as a mainstream transaction method. Financial writer John Paul Koning pointed out that remittances using cryptocurrencies peaked at around 5% shortly after Bitcoin was made legal tender in 2021 but have since fallen below 1%. The majority of Salvadorans still opt for conventional remittance channels to avoid fees associated with crypto.
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Latam Insights provides a weekly recap of important cryptocurrency developments and economic news in Latin America. The focus this week is on Brazil’s potential legislative changes regarding crypto investments, Tether’s real estate endeavors in El Salvador, and the ongoing challenges faced by crypto remittance efforts in the country. The tension between traditional financial systems and emerging crypto landscapes exemplifies the region’s evolving financial dynamics.
Overall, Brazil’s legislative efforts to embrace cryptocurrency investment signals its ambition to enhance market competitiveness. Simultaneously, Tether’s ambitious infrastructure development in El Salvador displays confidence in local crypto policies. However, the lack of significant adoption for crypto remittances underscores the hurdles that digital currencies still face in practical applications within traditional economic structures.
Original Source: news.bitcoin.com
