🌎Latam Crypto Report #16: Venezuela's Crypto Remittances Surge
Also: HIVE Digital plans a 100MW mining center in Paraguay; crypto kicks up Copa América fever
🌎Latam Crypto Report
Hola a todos! 👋
Welcome back to 🌎Latam Crypto Report, where contributor Kristin Majcher rounds up and digests the biggest crypto stories in the region. We’ll cover the biggest news from late June until late July.
In this edition, we’ll cover:
The increasing importance of crypto remittances in Venezuela
HIVE Digital’s plans to put a 100MW crypto mining data center in Paraguay
A highlight reel of the role crypto played in stoking Copa América fever
We can’t thank you enough for reading our coverage of the Latin American crypto landscape. As crypto becomes further entwined with politics, environmental issues and investment strategies in the region, we know how important it is to keep up with this rapidly changing space. If you haven’t already, please smash the “subscribe” button below and ask your friends to follow. Also, feel free to follow Kristin on Twitter and LinkedIn to share any crypto news or say hello.
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Venezuela Sees Surging Crypto Remittances
As Venezuela gears up for a much-discussed presidential election this weekend, we thought it would be fitting to highlight the dramatic increase in crypto remittances to the South American country as many citizens establish themselves abroad.
Bloomberg recently reported that Venezuela is seeing crypto remittances “skyrocket.” Since traditional methods to send fiat currency remain slow and expensive due to high transaction fees, Venezuelans have turned to digital assets.
Close followers of the Latin American crypto world already know how important remittances are in Venezuela. However, this article is worth a read because it highlights some interesting numbers and anecdotes to illustrate crypto’s importance in day-to-day life.
Crypto likely made up about 9% of the roughly $5.4 billion in remittances that migrants sent to Venezuela in 2023, Bloomberg reported, citing Chainalysis data.
That figure would indicate a record percentage of total remittances sent using crypto.
For a more in-depth understanding of crypto usage in Venezuela, check out the Wilson Center’s recent report entitled “Crypto in Venezuela: Two Sides of a Coin.”
(Bloomberg, Bitcoin.com, InfoMoney, Valor, Cointelegraph)
Hive Digital Picks Paraguay for 100MW Mining Center
Canadian data center specialist HIVE Digital plans to build a new 100MW crypto mining data center in Paraguay, becoming the latest company with plans to utilize the country’s biggest hydroelectric dam.
HIVE’s Executive Chairman Frank Holmes said:
“We are thrilled to announce our plan for a 100 MW project in Paraguay, utilizing green and clean energy sourced from the Itaipu hydroelectric dam.”
The new site is expected to more than double HIVE’s mining hash rate and will be the company’s first site in Paraguay, Cointelegraph reported.
HIVE said it recently toured the country and met with Paraguay’s President Santiago Peña, adding that the company “endorses his vision for a business-friendly Paraguay.”
The company said a large project such as this one “is expected to generate over $100 million of stable U.S. dollar revenue for the government’s utility company over the next three years,” noting that it will keep an eye on the government’s energy pricing and taxation policies as it makes decisions about further expansion.
The announcement comes on the heels of Paraguayan authorities cracking down on illegal crypto mining operations and increasing electricity rates for crypto miners (see the “Paraguay” section below for the latest news).
(HIVE Digital announcement, Decrypt, CriptoNoticias, BeInCrypto, Cointelegraph)
Crypto Kicks Up Copa América Fever
If you were one of the millions of viewers who tuned into the Copa América soccer (OK, OK — football) games in July, you may have noticed a flurry of crypto headlines related to the tournament.
Here’s a highlight reel of the most important developments:
Argentine soccer star Lionel Messi made waves when he promoted a Solana memecoin called WATER on Instagram, reportedly causing its price to surge about 350%. (Cointelegraph, InfoMoney, Exame, Livecoins, CoinDesk)
Fan tokens for Argentina and Spain’s national teams dropped more than 20% after the teams won their respective tournaments, Portal do Bitcoin reported. (Portal do Bitcoin, Livecoins)
Canadian singer Drake lost a $300,000 bitcoin bet when his country’s soccer team lost to Argentina, and the winning team wasted no time cleverly responding to the news on social media. (Decrypt, Livecoins, Portal do Bitcoin, ESPN)
🗞 Latin America Crypto News Rundown
Here’s where we break down Latin America crypto headlines from the past few weeks, organized by country and region. If you don’t see a country listed, it’s simply due to the news flow during a particular week.
Regional News
Binance named Guilherme Nazar as its new head of Latin America. He was previously the general manager of Binance Brazil. (Binance, Cointelegraph, Livecoins)
Kaiko Research released a new report called “The State of LATAM Crypto Markets.” According to the report, “LATAM trade volumes just had the biggest month-on-month increase since mid-2021, crossing $3 billion.” (The Defiant, Bitcoin.com, CriptoFacil)
South America is expected to see trading volumes of about $7.82 billion this year, a new CoinWire report estimates. (CoinWire, Cointelegraph, BeInCrypto)
Outlier Ventures and Morgan Creek Digital are launching a new accelerator program for Latin American startups. (Outlier Ventures via X)
Web3 mobile company Jambo is looking to expand in Latin America through its JamboPhone smartphone, which supports Solana and Tether. (Jambo via X)
Brazilian outlet Exame takes a look at the potential for bitcoin mining to become a strategic sector in Latin America. (Exame)
A bit more than half of Latin American crypto users are focused on saving and long-term gains, according to a new Binance survey. (Cointelegraph, The Fintech Times)
South America
🇦🇷 Argentina
Argentina is leading crypto adoption in the Western Hemisphere, Forbes reported. (Forbes, BeInCrypto, Cointelegraph, CriptoFacil, Livecoins)
Two Argentine entrepreneurs created a bitcoin-native stock exchange called Roxom, which just raised $4.3 million. (Infobae, CoinDesk)
Argentina’s new fiscal package includes tax amnesty for individuals who declare up to $100,000, which can include registered crypto assets. Meanwhile, its securities regulator continues to work toward crypto regulation. (Reuters, Livecoins, BeInCrypto, Livecoins, Perfil)
INTMAX announced details on the open-source development of Plasma Free, “the first EVM-compatible Plasma protocol.” (The Defiant, The Street)
Argentine startup founders are working together to turn Buenos Aires into a crypto, blockchain and Web3 hub through the so-called crecimiento movement. (Cointelegraph)
🇧🇴 Bolivia
Bolivian lawmaker Mariela Baldivieso presented a bill to regulate cryptocurrencies, following the central bank’s recent decision to reverse a longstanding crypto ban for financial institutions. (BeInCrypto)
Bloomberg Línea examines four challenges Bolivia is expected to face if it uses crypto to address its dollar shortage. (Bloomberg Línea)
🇨🇱 Chile
The Santiago Stock Exchange listed the country’s first bitcoin ETF, the iShares Bitcoin Trust (IBIT). (CriptoFacil, Bitcoin.com)
🇨🇴 Colombia
Colombia’s central bank has concluded in an extensive new report that “for now, there are no sufficient reasons” to introduce a CBDC. (Cointelegraph, Bloomberg Línea)
🇵🇾 Paraguay
Paraguay’s national grid operator (ANDE) decided to raise electricity fees for bitcoin mining by up to 16%. (Cointelegraph, BeInCrypto)
Paraguay’s crypto mining chamber spoke out against the rate hike, saying it could cost the country $1.5 billion and harm the economy. (Livecoins, Criptonoticias, CriptoFacil)
Bitcoin mining companies are now considering moving to other countries after the rate hike, including across the border to Brazil. (CriptoFacil, Bitcoin.com, CriptoNoticias)
Authorities continue cracking down on illegal mining, confiscating about 10 tons of equipment used in an illegal mining operation in Lambaré and breaking up a clandestine operation on the border in recent weeks. (CriptoFacil, Livecoins)
The Economist dug into how “crypto cowboys” are finding opportunities in Paraguay. (The Economist, The Week)
🇵🇪 Perú
Perú’s government is advancing with plans for a CBDC pilot project. (BeInCrypto)
🇺🇾Uruguay
Uruguay’s central bank president discussed his view on regulating cryptocurrencies during the Forbes Revolución Fintech Summit. (Livecoins)
🇻🇪 Venezuela
U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tren de Aragua as a transnational criminal organization for crimes including laundering money through cryptocurrencies. (U.S. Treasury, Livecoins, Bitcoin.com)
Crypto Ponzi schemes continue to spread in Venezuela, including a new one impersonating Petróleos de Venezuela (PDVSA). (BeInCrypto)
Central America, Mexico & Caribbean
🇸🇻 El Salvador
Bitfinex Securities said it would reimburse investors after its planned Hilton hotel venture failed to receive $500,000 in minimum funding. (Cointelegraph)
🇲🇽 Mexico
About 3.1 million Mexicans have crypto, according to a recent Sherlock Communications report. (BeInCrypto, Cointelegraph, The Yucatan Times)
Mexico now has about 80 bitcoin ATMs, CriptoNoticias reported. (CriptoNoticias)
🇧🇸Bahamas
The Bahamas has implemented new regulations requiring banks to provide access to its CBDC. (Reuters, BeInCrypto)
