Bolivia Sells Gold for Dollars, Argentina Bans Fintech Crypto, Fitch Upgrades El Salvador’s Credit Rating – Bitcoin News

Welcome to Latam Insights, a compendium of the latest cryptocurrency and economic development news from Latin America over the past week. In this issue, Bolivia passes a law to sell gold for dollars, Argentina’s central bank bans fintech companies from using cryptocurrencies, and Fitch improves El Salvador’s credit rating.

Bolivia passes the law of selling gold in dollars

Bolivia recently passed a law that will allow the government to sell up to 50% of its gold reserves for dollars, alleviating an internal scarcity of dollars. The law gives powers to the government to negotiate the sale of 22 tons of gold out of the roughly 44 available in local reserves.

The initiative was introduced in 2021, but was rescued and passed only recently by Congress, which is dominated by Bolivian President Luis Arce’s party. Jorge Richter, spokesman for the presidency, explained the purpose of the law’s rapid approval. he advertiser:

The country has a tool so that these events and situations are not repeated in the past days that we knew, difficulties in producing North American currency.

Almost all Bolivian banks have them previously It put an end to daily $300 withdrawals for its users, and the Central Bank of Bolivia had to organize direct sales to meet the domestic demand for foreign currency.

The Central Bank of Argentina is banning Fintech companies from using cryptocurrencies

On May 4, the Central Bank of Argentina issued a communiqué ban Certain financial technology providers are prohibited from using cryptocurrency assets or providing services related to digital assets or other assets that are “not regulated by the competent national authority and authorized by the Central Bank of the Argentine Republic”. to their clients.

This action will only affect fintech companies that offer direct payments accounts, incl amazing, MercadoPago, personal payment, DollarApp, newbies f MODE Among others. Bitcoin Argentina, a national NGO, rejected this measure, Mentionsed It is “surprising and unadvised. It is incomprehensible what aim the Central Bank pursues by banning an activity that today is considered entirely satisfactory and beneficial to clients of local stock exchanges.”

Fitch Ratings is improving El Salvador’s credit rating

Fitch Ratings, one of the three major credit rating agencies, has raised El Salvador’s credit rating, even as it adopts bitcoin as legal tender. Fitch Ratings upgraded El Salvador’s rating from CC to CCC+. Mentionsed that this was a result of “the successful completion of the exchange and payment of significant global bond writedowns early in the year, and reflects Fitch’s view that another event of default is no longer likely.”

Salvadoran President Neb Bukele celebrate change, stating that he could not wait for Fitch to “upgrade him again, once we announce our budget surplus for 2024.”

What do you think of developments in Latin America this week? Tell us in the comment section below.

Sergio Gushchenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, getting into the world of crypto when the price spike occurred during December 2017. Having a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom on a social level, he offers a different perspective on the success of crypto and how it helps people. Those who do not deal with banks and the disadvantaged.

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