Economist Steve Hanke has suggested that Argentina should consider dollarizing its economy as a means of resolving the financial crisis. Hanke, a professor of applied economics at Johns Hopkins University, made the proposal on Twitter on 25 April, adding that in his view the Argentine Peso had depreciated against the US dollar by 52% since the start of the year. He echoed the views of presidential candidate Javier Milei, who has called for the adoption of the US dollar in place of the Argentine currency in order to tackle escalating inflation and devaluation. Hanke also criticized the country’s debt to the International Monetary Fund (IMF).
Plans for the construction of a “Bitcoin City” in El Salvador have not yet been made public, according to the country’s Public Works Ministry, which stated on 26 April that it had no records of such proposals. Nevertheless, the “Escape to El Salvador” organization, which promotes migrating to the country, confirmed that the project was ongoing but had not yet been formally introduced to the ministry. The proposed city was unveiled by President Nayib Bukele in November 2021, and would be funded partly by as-yet-unreleased bonds known as “Volcano bonds.”
Venezuelan cryptocurrency watchdog Sunacrip has dismissed more than 400 employees, according to local sources. The facility had previously employed up to 600 people but the remaining workers were dismissed following a cryptocurrency corruption probe. Former Sunacrip head Joselit Ramirez was arrested earlier this year over an alleged involvement in the PDVSA-crypto corruption scheme. Venezuelan President Nicolas Maduro subsequently intervened in the organization, appointing a commission to investigate its actions, but there has been no official announcement on the facility’s future.
These are just some of the most salient points of Latin American news covered in the latest edition of Latam Insights, the weekly roundup of developments in the region. It is intended to provide a snapshot of the major trends and events, including macroeconomic data, significant financial news, and commentaries on blockchain and cryptocurrency usage. The publication gives a broad view of what is happening throughout the many diverse countries in Latin America.
Sergio Goschenko, a cryptocurrency journalist based in Venezuela, authors Latam Insights. He came to the crypto world relatively late, in December 2017, but his background in computer engineering and his experiences in Venezuela offer a unique perspective on the massive rise in cryptocurrency prices and how it has impacted unbanked and underserved people. In this edition of the weekly summary, Goschenko provides insights into the most important economic and crypto news of the past week from across the region.