BeInCrypto’s weekly Latin American cryptocurrency roundup includes top news and trends from the region. With reporters in Brazil, Mexico, Argentina and more, we cover the latest updates and insights from the Latin American crypto scene.
This week’s roundup includes stories about Brazil’s Bitcoin Pharaoh, Botev Plovdiv FC’s move to El Salvador to issue tokenized shares, and more.
El Salvador and Russia strengthen economic cooperation
El Salvador and Russia revealed plans for closer economic collaboration at the St. Petersburg International Economic Forum. Salvadoran Vice President Félix Ulloa proposed improving trade relations and establishing mutual embassies, which could reshape the economies of both countries.
Russia, which faces sanctions from the United States and the EU Since its invasion of Ukraine in 2022, it is seeking new trade allies. Under President Nayib Bukele, El Salvador has cooled relations with the United States and strengthened ties with China.
Read more: How has the adoption of Bitcoin (BTC) been in El Salvador?
Geopolitically, an alliance with Russia could improve El Salvador’s global position, reducing its dependence on the United States and consolidating relations with emerging powers such as China and Russia. Economically, El Salvador aspires to balance its trade deficit with Russia, highlighted for Ulloa’s mention of an import of 16 million dollars from Russia in 2021 without the corresponding exports.
Technologically, El Salvador aspires to become a hub of innovation. Collaborations with Russian technology companies could support this ambition. In particular, Bitcoin’s role is crucial in this possible partnership.
As the first country to adopt Bitcoin as legal tender, El Salvador’s digital asset laws and the possible creation of a Bitcoin bank could facilitate trade with Russia, avoiding traditional fiat currencies controlled by central banks.
This economic cooperation could redefine El Salvador’s position on the world stage, offering new opportunities in trade, technology and digital finance.
The Brazilian “Pharaoh of BTC” will remain in prison
The Supreme Federal Court (STF) confirmed on June 11 the imprisonment of Glaidson Acácio dos Santos, known as the “Pharaoh of Bitcoins”. Santos, accused of carrying out a scam of cryptocurrencies through Gas Consultoria, was arrested in 2021 during Operation Kryptos of the Federal Police.
Santos’ defense requested a habeas corpus, seeking to convert his imprisonment to house arrest due to alleged psychiatric problems and questioning the jurisdiction of the Federal Court. However, Judge Gilmar Mendes rejected the request.
He acknowledged that pyramid schemes are usually state jurisdiction, but noted that federal courts can intervene when cases involve crimes related to the National Financial System.
Santos faces multiple charges, including financial pyramid, fraudulent management, irregular issuance of securities, unauthorized operations and criminal organization. His scheme promised victims monthly returns of 10% on investments in crypto assets.
Read more: Regulation of cryptocurrencies in Latin America (Part One)
This decision comes after the recent arrest of Cláudio Barbosa, another “pharaoh of bitcoins”for directing a scam pyramid through Trust Investing. A fugitive since 2022, Barbosa allegedly caused a loss of 4.1 billion reais to investors from more than 80 countries.
The Bulgarian club Botev Plovdiv will issue shares in El Salvador
Bulgarian football team Botev Plovdiv FC has announced plans to transfer its cryptocurrency operations to El Salvador through Bitfinex Securities. The club adopted Bitcoin as a payment method in October 2023. It moved its operations to benefit from tax incentives and the favorable business environment of El Salvador, with the aim of accessing new capital markets.
George Manolov, head of the club’s Bitcoin strategy, revealed that Botev Plovdiv established a financial entity in El Salvador to issue tokenized shares. This initiative allows investors to become co-owners of the club.
“We want Bitcoin to be the main long-term financial strategy for our business. I am here because we want to do a token issuance from El Salvador to accumulate BTC, but also to allow our fans to be part of the process to become a recognized European club. We are working with Bitfinex Securities to democratize shares, and the investment ticket will be very low. Anyone can become a co-owner,” Manolov explained.
Manolov spoke about this new business model in a presentation at Bulgaria and will share it on the BTC Prague forum. He explained that tokenization would enable efficient storage, transfer and management of assets on Bitfinex Securities through the Liquid Network, a Bitcoin sidechain.
Brazil’s private bank expands its access to BTC and ETH
Itaú Unibanco, Brazil’s largest private bank, has expanded its cryptocurrency offering, allowing clients trading with Bitcoin and Ethereum through its digital platform, Íon. With assets that exceed 2.7 trillion reaisthe bank aims to make access to these cryptocurrencies easier and safer.
The initiative began gradually at the end of 2023, receiving positive feedback from customers. In internal surveys, more than 90% of users rated their experience as good or excellent. With a minimum contribution of 10 reais, all active users of the Íon platform can now trade cryptocurrencies.
“We are very happy with the crypto asset journey we are building with our clients. Opening trading to all Íon users reflects not only the evolution of our product, but also of the entire market,” said Guto Antunes, head of Itaú Digital Assets. He highlighted Itaú’s commitment to offering a trading intuitive and secure cryptocurrency exchange.
Itaú also aims to educate clients about the crypto market, ensuring they make informed investment decisions. This move aligns Itaú with other Brazilian institutions such as BTG Pactual and Nubankwho already offer cryptocurrency exposure to their clients.
El Salvador surpasses IMF observations, advances with Bitcoin
The vice president of El Salvador, Félix Ullóa, has reaffirmed the country’s commitment to Bitcoin, pointing to the economic liberation of central banks. Since the enactment of the Digital Assets Act last year, the nation has adopted various tokens and cryptocurrencies.
Ullóa highlighted El Salvador’s pioneering role in supporting Bitcoin, even before spot exchange-traded funds (ETFs), coupled with the fact that BTC could reach $100,000 by the end of 2024.
Despite initial criticism from the International Monetary Fund (IMF) and rating agencies, El Salvador has diversified its financing sources beyond traditional multilateral organizations. This strategy has reinforced the country’s credibility and attracted companies in the digital economy thanks to a favorable regulatory framework.
Read more: Regulation of cryptocurrencies in Latin America (Second part)
El Salvador has just completed three years since the adoption of Bitcoin as legal tender. The country has been buying one Bitcoin daily, accumulating up to 30 BTC monthly. These investments have generated more than $67 million in unrealized benefits.
Large investors trust in the potential of El Salvador
Notable investors such as Cathie Wood, CEO of ARK Invest, believe that President Bukele’s Bitcoin strategy could significantly boost the nation’s GDP over the next five years. Ullóa acknowledged that the IMF continues to monitor the Bitcoin Law, highlighting ongoing discussions about the associated risks and benefits.
As the Latin American crypto scene grows, these stories highlight the region’s growing influence in the global market. From El Salvador’s Bitcoin plans to the launch of the trading of cryptocurrencies of Brazilian banks. Likewise, LATAM is positioning itself as a key player in the world of technology. Stay tuned for next week’s updates and insights.
Disclaimer
Disclaimer: In compliance with Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article is intended to provide accurate and timely information. However, readers are advised to independently verify facts and consult a professional before making any decisions based on this content.
