Uruguay reportedly installs its first Bitcoin ATM

January 15, 2022 Coin Telegraph

ATM

Uruguay’s first crypto ATM has been installed in the coastal city of Punta del Este, a major tourist attraction in the region.

Uruguay has reportedly installed its first Bitcoin (BTC) ATM, making it the 11th South American country to publicly encourage crypto adoption. Prior to Uruguay’s involvement, South America hosted 79 ATMs, which represented 0.2% of global BTC ATM installations.

According to Ámbito, Uruguay’s first crypto ATM was installed in the coastal city of Punta del Este, a major tourist attraction in the region. Uruguay’s first Bitcoin ATM was developed and installed in partnership with two local crypto companies — URUBit and inBierto.

The crypto ATM in Uruguay currently supports withdrawal and deposits of five cryptocurrencies, namely — BTC, Binance Coin (BNB), Binance USD (BUSD), Ferret Token (FRT) and Urubit (URUB). FRT and URUB are in-house cryptocurrencies managed and distributed by URUBit and inBierto respectively.

Adolfo Varela, the CEO of inBierto, confirmed that the initiative was 100% funded by the government of Uruguay. inBierto is a crypto investment platform, who is also a member of the Uruguayan Chamber of Fintech (Cámara Uruguaya de Fintech), a startup accelerator focused on the fintech sector. URUBit is a decentralized token created in Uruguay and deployed in the Binance Smart Chain (BSC).

Data from Coin ATM Radar shows that Colombia leads the South American market with 31 crypto ATM installations to date, who is followed by Brazil and Argentina at 22 and 11 installations respectively.

Other South American countries such as Ecuador, Venezuela, Aruba and Saint Kits and Nevis have also installed one crypto ATM.

inBierto has not yet responded to Cointelegraph's request for comment.

Last year, an Uruguayan senator introduced a draft bill seeking to regulate cryptocurrency and enable businesses to accept crypto payments.

As Cointelegraph reported, senator Juan Sartori was not keen on adopting crypto as a legal tender. Instead, he suggested:

“Today we present a bill that seeks to establish a legitimate, legal and safe use in businesses related to the production and commercialization of virtual currencies in Uruguay.”

Paraguay moves a step closer to regulating digital currency

December 23, 2021 Coin Telegraph

Bitcoin mining

A bill that seeks to regulate the local cryptocurrency industry has passed the the Senate of Paraguay.

On Dec. 17, 2021, the Senate of Paraguay approved a cryptocurrency bill introduced in July. The provisions, which define several key terms including virtual assets and call for licenses to mine cryptocurrencies, will now be sent to the Deputy Chamber for further deliberation.

Senator Fernando Silva Facetti, the bill's sponsor, revealed that it's passed in the Paraguayan Senate after a contentious debate. According to the senator, the law also aims to foster the growth of crypto mining activities by using the surplus electricity generated in the country.

(1/3) Today, after an intense debate, the Senate @SenadoresPy approved todaya New Law Project which regulates the industry and commercialization of #Crypto assets #Bitcoin #Paraguay after ...(open threat)
— FernandoSilvaFacetti (@FSilvaFacetti) December 17, 2021

The body of the legislation includes a definition for virtual assets, tokens, cryptocurrency mining and VASPs (virtual asset service providers). It also grants the Ministry of Industry and Commerce the authority to seek assistance from government bodies outside its boundaries to implement the law.

The bill explicitly states that cryptocurrency mining is a legal activity, noting that:

"Virtual asset mining is a digital and innovative industry. This industry will benefit from all incentive mechanisms provided in national legislation."

Paraguay reportedly produces more energy than it consumes. As a result, several firms are interested in establishing cryptocurrency mining operations there to exploit this potential surplus.

In July, Paraguayan Congressperson Carlos Rejala and Senator Fernando Silva Facetti presented a Bitcoin (BTC) bill in Congress, demonstrating the lawmakers' commitment to crafting a comprehensive digital asset policy for their nation. The legislation has now been passed by the country's Congress and will be discussed in the Chamber of Deputies in 2022.

Due to local economic and fiscal challenges, especially in Argentina, Venezuela, and Mexico, South America has emerged as a viable hotbed for cryptocurrency adoption. For example, as their national fiat currencies crumbled, Argentinians and Venezuelans have turned to digital alternatives like Bitcoin as a more viable payment option. Others, such as El Salvador, have taken a completely different approach, with the president encouraging the use of BTC on the people

Mercado Bitcoin parent company 2TM raises $50M, further cementing unicorn status

November 30, 2021 Coin Telegraph

Mercado Bitcoin parent company 2TM raises M, further cementing unicorn status

Brazil

The Series B builds off 2TM’s massive $200 million SoftBank-led raise in July, which catapulted the company to a $2.1 billion valuation.

2TM, the parent company of Brazilian cryptocurrency exchange Mercado Bitcoin, has received $50.3 million in fresh financing to expand its operations across Latin America, sending a strong signal that venture capital sees growth potential in the region.

The Series B fundraiser had participation from United States-based funds 10T and Tribal Capital, as well as Brazilian companies Traders Club, Pipo Capital and Endeavor, the company disclosed Tuesday.

The funding round further cements 2TM’s status as a crypto unicorn after the company raised $200 million from SoftBank in July. At the time, Mercado Bitcoin was the second Latin American cryptocurrency exchange to eclipse the $1 billion valuation mark.

Brazil’s first #Bitcoin exchange, Mercado Bitcoin, just raised $200m from SoftBank! - CoinTelegraph
— Bitcoin Archive (@BTC_Archive) July 1, 2021

Mercado Bitcoin now boasts of over 3.2 million customers, which is equivalent to roughly 80% of individual accounts active on the Brazilian stock exchange, the company said. Trade volumes reached $7 billion in the first 10 months of 2021, according to 2TM CEO Roberto Dagnoni.

Mercado’s growing user base reflects heightened retail interest in digital asset investing at a time when economies across Latin America are struggling with hyperinflation and other fiscal pressures. In Brazil, Mercado Bitcoin’s home base, regulators have endorsed legislation that would support the continued growth of crypto investing. Leading investment bank BTG Pactual has also launched a new platform to make it easier for users to access cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).

When asked about what other factors are driving crypto adoption in the region, a Mercado Bitcoin spokesperson told Cointelegraph that motivations vary across countries. "For example, in Brazil, the main driver is as [an] alternative investment class," the spokesperson said. "In Mexico, remittances are a significant part of the overall volume drivers. In Argentina, there is a much more intensive adoption of stablecoins to protect from currency fluctuation."

The cryptocurrency industry is now home to dozens of high-profile unicorns and at least three multi-billion-dollar investment funds. As Cointelegraph reported on Monday, former Citi banker Matt Zhang has launched a $1.5 billion crypto venture fund to back promising plays in the domains of blockchain infrastructure, virtual worlds and programmable money.

Venezuelans promised Axie Infinity scholarships for crypto training courses

November 21, 2021 Coin Telegraph

Coin Telegraph

The initiative is a part of the La Guaira Digital program, which aims to fast-track growth and induce economic stability in the country.

A gubernatorial candidate from Venezuela has promised to offer scholarships for citizens interested to join the Technical Training Center for Mining and Administration of Digital Crypto Assets.

José Alejandro Terán, the aspiring governor who represents the country’s ruling party, started the initiative as a part of the La Guaira Digital program, which aims to fast-track growth and induce economic stability in the country.

As Cointelegraph Spanish reported, Terán’s training center will provide specialized training to the scholarship holders in nonfungible tokens (NFT), crypto mining and trading. Moreover, the drive will be supported by four entities, namely the National Superintendence of Cryptoassets (SUNACRIP), Axie Infinity Academy, the political group Independientes con Terán and the youth of the United Socialist Party of Venezuela (JPsuv).

In addition to the scholarship initiatives for learning crypto, the candidate for governor envisions the generation of “a thousand jobs” through this proposal:

“I feel that by helping young people build multiple sources we ensure economic stability for their families. 1000 jobs in a year, write it down!”

Terán also promised that the training, powered by Axie Infinity academy will include the installation and repair of networks and the mining of cryptocurrencies and crypto trading. According to data sourced by Chainalysis, Venezuela stands as the seventh country in the Global Crypto Adoption Index.

The CEO of crypto investment platform Uphold, JP Thieriot, recently spoke to Cointelegraph about the growing Bitcoin-based use cases for the Latin American market.

According to the entrepreneur, El Salvador’s mainstream Bitcoin (BTC) adoption has had a domino effect in expediting crypto adoption in the surrounding regions including Venezuela and Colombia.

Thieriot also believes that crypto adoption makes more sense for smaller economies instead of creating an in-house central bank digital currency (CBDC).

A third of Salvadorans ‘actively’ using Chivo wallet, President Bukele claims

September 25, 2021 Coin Telegraph

Bitcoin Wallet

On Sept. 6, El Salvador became the first country to adopt BTC as legal tender, attracting both praise and criticism from the global community.

Salvadoran President Nayib Bukele claims that 2.1 million of his fellow citizens are using the government-backed Chivo cryptocurrency wallet, offering a glimpse into the apparent success of the country’s Bitcoin (BTC) gambit.

The controversial president updated his 2.9 million Twitter followers Saturday afternoon, claiming that Chivo “now has more users than any bank in El Salvador” after just three weeks in operation. Bukele indicated that it’s only a matter of time before Chivo adoption eclipses all banks in El Salvador combined.

2.1 million Salvadorans are ACTIVELY USING @chivowallet (not downloads).

Chivo is not a bank, but in less than 3 weeks, it now has more users than any bank in El Salvador and is moving fast to have more users that ALL BANKS IN EL SALVADOR combined.

This is wild!#Bitcoin
— Nayib Bukele (@nayibbukele) September 25, 2021

The state-issued Chivo wallet launched in early September as El Salvador officially recognized Bitcoin as legal tender — a landmark move that could offer an important case study for other countries in the region. Chivo enables individuals and businesses to send and receive payments in Bitcoin or dollars from anywhere in the world. The wallet is available on both Android and Apple devices. As Cointelegraph reported, Mexican cryptocurrency exchange Bitso has signed on as the core service provider for Chivo.

Bukele’s latest update suggests that the Bitcoin Law is being received favorably across the country, even as hundreds of anti-government protestors took the streets to voice their opposition. On Sept. 15, those protests culminated in the burning down of a crypto kiosk in the nation’s capital city.

To be sure, mass adoption of Chivo is due in part to the government airdropping $30 worth of BTC to every Salvadoran account holder. According to a recent survey from São Paulo-based agency Sherlock Communications, slightly more than half of Salvadorans have no familiarity with Bitcoin.

In the meantime, Bukele’s government has been filling its coffers with BTC following a series of volatile price swings for the digital asset. El Salvador “bought the dip” on at least two recent price drops — Sept. 7 and Sept. 20 — bringing its total holdings to 700 BTC.

El Salvador purchases first 200 BTC, President Bukele confirms

September 6, 2021 Coin Telegraph

Adoption

El Salvador is the first country in the world to recognize Bitcoin as legal tender. Despite opposition from local groups, the government believes cryptocurrency will be a net positive for the economy and society.

El Salvador president Nayib Bukele confirmed Monday that his government has purchased its first 200 Bitcoin (BTC) ahead of the Sept. 7 rollout of a new law set to make the cryptocurrency legal tender.

“Our brokers will be buying a lot more as the deadline approaches,” Bukele said, referring to the Sept. 7 timetable for fully implementing the new BTC legislation.

El Salvador has just bought it’s first 200 coins.

Our brokers will be buying a lot more as the deadline approaches.#BitcoinDay #BTC
— Nayib Bukele (@nayibbukele) September 6, 2021

The purchase is part of a new $150 million Bitcoin fund passed last week by El Salvador’s Congress. The fund will be used to facilitate conversions from BTC to United States dollars in the lead-up to the new law being implemented. At current prices, the BTC purchase was worth just over $10.36 million.

In June of this year, El Salvador became the first country in the world to recognize Bitcoin as legal tender. Although the decision was met with praise by the Bitcoin community, detractors from the World Bank and International Monetary Fund warned that the new strategy isn’t a good idea. More recently, internal opposition, especially among retirees, saw hundreds across the country protest against the new Bitcoin Law.

Recent: El Salvador president announces infrastructure already being built ahead of country's Bitcoin adoption

Perhaps surprisingly, Bank of America recently outlined at least four potential benefits to El Salvador accepting Bitcoin. In a report published in July, the bank said the country’s adoption of BTC could streamline remittances, promote financial digitization, provide greater consumer choice and open the country to foreign investors.

The new Bitcoin Law gives Salvadorans the ability to hold Bitcoin as part of a long-term investment strategy or withdraw it in cash at any of the 200 ATMs installed across the country. The country is also building infrastructure to support a state-issued Bitcoin wallet, dubbed Chivo. The Chivo wallet will have its own ATM that allows citizens to withdraw cash 24 hours a day without paying commissions.

Bank of America outlines 4 potential benefits of El Salvador’s Bitcoin strategy

August 1, 2021 Coin Telegraph

Bank of America

“More than 70% of the adult population of El Salvador does not have a bank account,” reads the latest Global Research report from Bank of America. “For that reason, democratizing access to electronic payments, through Bitcoin, has a progressive touch.”

Bank of America, one of the nation’s largest financial institutions based on total assets, believes El Salvador could have a lot to gain with its latest foray into Bitcoin (BTC).

In a report published last week, analysts at the bank said El Salvador’s decision to recognize BTC as legal tender could streamline remittances, promote financial digitization, provide consumers with greater choice and open up the country to American firms and digital currency miners.

The bank noted that remittances account for a staggering 24% of El Salvador’s gross domestic product, but a sizable chunk of that goes toward transaction fees.

“Using Bitcoin for remittances could potentially reduce transaction costs compared to traditional remittance channels,” the report said, according to an image provided by state-backed Diario El Salvador. “The idea is that Bitcoin could be used as an intermediary for the cross-border transfer, so that dollars are converted to Bitcoin by the sender and then converted back to dollars domestically by the receiver.”

#ElSalvador El Presidente @nayibbukele comparte esta mañana algunas de las oportunidades que @BankofAmerica ve en El Salvador, tras la adopción del #Bitcoin pic.twitter.com/08D1RuGFYI
— Diario El Salvador (@elsalvador) August 1, 2021

In June of this year, El Salvador became the first nation-state to accept Bitcoin as legal tender, marking an important milestone in the digital currency’s evolution from obscurity to mainstream acceptance. The decision to integrate BTC into the country’s financial system has been met with criticism by the International Monetary Fund and the United Nations’ Economic Commission for Latin America and the Caribbean. Meanwhile, JPMorgan Chase believes El Salvador’s Bitcoin gambit could place additional pressure on the network’s already limited ability to serve as a medium of exchange.

Survey data shows half of Salvadorians are skeptical about using BTC as legal tender. Those who choose to adopt BTC for transactions can use the state-backed Chivo Bitcoin wallet, among many other options available to them.

Since El Salvador recognized Bitcoin as legal tender, several other Latin American nations have hinted at pursuing a cryptocurrency strategy of their own. However, until now, no other country has followed in El Salvador’s footsteps.

Paraguayan lawmakers to present Bitcoin bill on July 14

July 10, 2021 Coin Telegraph

bitcoin regulation

El Salvador’s decision to accept Bitcoin as legal tender in June appears to be influencing lawmakers across the region to begin exploring their own cryptocurrency strategy. Paraguay is next in line to introduce new crypto-focused legislation.

Paraguayan Congressman Carlitos Rejala and Senator Fernando Silva Facetti are planning to introduce a Bitcoin (BTC) bill to Congress on Wednesday, July 14, underscoring the lawmakers’ urgency in formulating a coherent digital asset strategy for their country.

“I am here to unite Paraguay,” Rejala tweeted Friday, adding that he and his fellow lawmaker are planning a “mega surprise for Paraguay and the world.”

I am here to unite Paraguay , that is why we decided with Senator @FSilvaFacetti to present together the bill #bitcoin on Wednesday, July 14!
Stay tuned since there will be a mega surprise for Paraguay and the world. Something GIANT is coming #Bitcoin #btc
— Carlitos Rejala (@carlitosrejala) July 9, 2021

Although Rejala didn’t specify what the bill would entail, some lawmakers in the country want to follow El Salvador’s lead in making Bitcoin legal tender. On June 6, Rejala informed his more than 50,000 Twitter followers that digital assets would be connected to “an important project to innovate Paraguay in front of the world.”

Como ya lo decía hace un buen tiempo, nuestro país necesita avanzar de la mano de la nueva generación.
Llegó el momento, nuestro momento.
Esta semana empezamos con un proyecto importante para innovar a Paraguay frente al mundo!

El verdadero to the moon #btc & #paypal pic.twitter.com/ZMRJgAIxgO
— Carlitos Rejala (@carlitosrejala) June 7, 2021

Based on Rejala’s previous statements, the forthcoming bill will introduce measures to make Paraguay a leading center for foreign cryptocurrency investors, businesses and perhaps even Bitcoin miners. Potentially, this will include provisions to accept BTC as legal tender.

Like other Latin American lawmakers, Rejala added laser eyes to his profile picture on Twitter, a symbolic way of showing his bullish outlook on BTC.

Latin America has emerged as a potential hotbed for cryptocurrency adoption due to local economic and fiscal pressures, especially in countries like Argentina, Venezuela and Mexico. As Cointelegraph reported, Latin America is now home to at least two cryptocurrency unicorns, a term used in the venture capital industry to describe startups with a valuation of $1 billion or more.

2TM Group, the parent company behind Brazilian cryptocurrency exchange Mercado Bitcoin, recently completed a $200 million funding round with SoftBank, bringing its total valuation to an estimated $2.1 billion. Meanwhile, Mexican crypto exchange Bitso is valued at $2.1 billion after concluding a Series C funding round.

Argentine lawmaker introduces bill for workers to be paid in crypto

July 7, 2021 Coin Telegraph

Argentina

The proposal may help Argentinians in the export business avoid heavy taxes from foreign currency payments.

A member of the lower house of the Argentine National Congress has introduced legislation that would allow certain workers in the country to receive some or all of their salary in crypto.

In a Tuesday tweet, Argentine Chamber of Deputies member José Luis Ramón said his proposed crypto bill would apply to anyone working as an “exporter of services” and those who depend on an employer for income. Should the legislation pass, it would allow such workers the choice of receiving a full or partial salary in crypto or Argentine pesos.

“The idea is that [workers] can strengthen their autonomy and retain the purchasing power of their remuneration,” said Ramón. “This initiative stems from the need to promote greater autonomy and governance of wages, without this implying a loss of rights or exposure to situations of abuse within the framework of the employment relationship.”

According to local news outlet La Nueva Mañana, workers who provide services abroad such as exporting would not necessarily need to convert their crypto income to Argentine pesos as they do with other foreign currencies. Law 27,541, passed by the Argentine National Congress in December 2019, established a 30% tax on foreign currency, but Bitcoin (BTC) and other tokens may not fall within this legal framework.

The crypto bill must be passed by both the Argentine Chamber of Deputies and the Senate before being sent to President Alberto Fernández for approval. Ramón is one of ten congresspeople representing the province of Mendoza, and the leader of the 6-person Federal Unity for Development alliance among three political parties. However, there are 257 members in the legislative house and 72 senators. Everybody's Front and Together for Change are the two dominant alliances in the congress.

The proposed bill comes as some lawmakers in Central and South American countries are pushing for regulatory clarity or outright adoption of crypto. Last month, El Salvador passed a law making Bitcoin legal tender, legislation that will go into effect on Sept. 7. Congresspeople in both Brazil and Panama have indicated through social media channels they would push for forms of legislation supporting crypto.

Latin America’s Mercado Bitcoin exchange raises $200M from SoftBank

July 1, 2021 Coin Telegraph

Latin America’s Mercado Bitcoin exchange raises 0M from SoftBank

Coin Telegraph

2TM GRoup, the company behind Mercado Bitcoin, is now valued at $2.1 billion. It's the second crypto exchange in Latin America to eclipse the $1 billion valuation mark.

Latin American cryptocurrency exchange Mercado Bitcoin has secured $200 million in Series B financing from SoftBank, marking one of the largest funding rounds in the region’s history.

Mercado Bitcoin will use the funds to expand its offerings and invest in new infrastructure to meet the growing demand for digital assets in the region, the São Paulo, Brazil-based exchange announced Thursday. 2TM Group, the parent company behind Mercado Bitcoin, is now estimated to be worth $2.1 billion, making it the eighth-largest unicorn on the continent.

In the venture capital industry, the term “unicorn” describes privately-held startups with a value of at least $1 billion.

Mercado Bitcoin may just be the second Latin American crypto exchange to join the elite unicorn category. As Cointelegraph reported, Mexican exchange Bitso was valued at $2.2 billion in May after concluding a $250 million Series C fundraiser.

Like other cryptocurrency exchanges, Mercado Bitcoin has registered tremendous growth this year. Roughly 700,000 users have signed up to use the platform in 2021, bringing its total user base to 2.8 million. That represents more than 70% of the participants on the Brazilian stock exchange. By comparison, in 2017, the firm had just 900,000 users, according to Robert Dagnoni, executive chairman and CEO of 2TM.

Trading activity also surged during the height of the bull market, with Bitcoin volumes hitting $5 billion between January and May – surpassing the exchange’s total for the first seven years combined. Compared with year-ago levels, trade volumes were up 11 times, Dagnoni said.

Marcelo Claure, CEO of SoftBank Group International, described Mercado Bitcoin as a “global leader in the cryptocurrency space,” adding that digital assets have “incredible potential in Latin America.”

Countries like Argentina, Venezuela and Mexico have seen a resounding increase in crypto adoption due to local economic and fiscal pressures. Several Latin American countries are rumored to be exploring the possibility of accepting Bitcoin as legal tender. However, until now, only El Salvador has made the bold move.

Dagnoni told Cointelegraph that Brazil has played an exceptionally important role in boosting crypto adoption. "Brazilians have proved to be early technology adopters in many fronts, looking at Waze and Uber as examples," he said, adding:

"Cryptocurrencies were no exception to that trend. In Brazil, and generally speaking in Latin America, millions of people are realizing that digital assets and cryptocurrencies are both innovative emerging technologies and are efficient in storing value."

The CEO also said more Brazilians are turning to crypto and other alternatives due to artificially low interest rates:

"[W]e've seen some of the lowest interest rates on record in Brazil, which fuelled the development of the alternative assets industry. Crypto is benefiting from this trend, which can also be seen in other asset classes, such as VCs and Private Equity."

South America

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