Welcome to Latam Insights! This is a summary of the most relevant crypto and economic development news from Latin America over the past week. In this issue: Argentina’s inflation rate exceeds 100%, El Salvador issues its first digital asset license, and Venezuela is still under investigation for crypto-related corruption.
Argentina, inflation in March was 104.3%, the highest in Latam
Argentina’s National Institute of Statistics and Census released the inflation rate for March 2023, recording a7.7% month-on-month increase. This figure is higher than the 6.6% registered in February and was generated by increases in education and food and beverages.
With these figures, Argentina registered a year-on-year inflation rate of 104.3%, the highest in Latam according to regional estimates. Analysts are concerned about the evolution of this variable, as even government price control programs have failed to slow it down.
Argentine economist Soleda Perez Duarde said,:
March inflation data is terribly negative news. Inflation is widespread in Argentina and without a program and an anchor, it will be very difficult to break the trend.
El Salvador issues first digital asset license
The government of El Salvador has issued the country’s first digital asset license, allowing cryptocurrency exchanges and custody providers to issue digital securities in a regulated environment. The first licensee was Bitfinex Securities El Salvador, a newly formed company that will operate independently of Bitfinex, a well-known cryptocurrency exchange.
According to statements by Bitfinex CTO Paolo Ardoino, this is a milestone in the realization of features such as companies using digital markets to raise capital, Ardoino said:
This means that any entity, from small companies to governments, can raise capital in a regulated environment and take advantage of an investor base that is very comfortable with crypto assets and tokenized securities, representing a market of over $1 trillion that will peak at $3 trillion.
Two more licenses weregrantedone to E4, founded by Strike founder Jack Mollers, and one to Ditvanks, a Salvadoran startup company.
Venezuela’s cryptocurrency corruption investigation continues
An oil-related cryptocurrency corruption investigation into the alleged use of cryptocurrencies linked to oil sales continues to evolve in Venezuela. According to reports, the survival of Venezuela’s cryptocurrency watchdog, Sunacrip, is in jeopardy.
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