El Salvador to Maintain Bitcoin as Legal Tender

February 5, 2024 | by


In the latest edition of Latam Insights, it is revealed that El Salvador plans to maintain Bitcoin as legal tender, despite the International Monetary Fund’s urging to drop the cryptocurrency. Vice President Felix Ulloa confirmed that if President Nayib Bukele secures a second term, the Bitcoin policies will continue, including the launch of volcano bonds in the first quarter of 2024. In Argentina, President Javier Milei has dropped opportunities for declaring ownership of assets, including crypto, from the omnibus bill presented to Congress. The move aims to expedite the bill’s approval amid disagreements on certain issues. Additionally, the U.S. Treasury Office of Foreign Assets Control has revoked a license that allowed Venezuela’s state-owned gold company to participate in international gold transactions, threatening further oil and gas-related sanctions if key opposition figures’ participation in the upcoming presidential ballot is not reviewed by April. The developments covered in this edition of Latam Insights highlight the ongoing impact of cryptocurrencies and economic policies in Latin America.

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El Salvador to Maintain Bitcoin as Legal Tender

El Salvador to Maintain Bitcoin as Legal Tender

Bitcoin to remain legal tender during President Bukele’s second term

El Salvador Vice President Felix Ulloa confirmed in an interview with Reuters that bitcoin will continue to be recognized as legal tender in the country during President Nayib Bukele’s second term. This decision comes despite the International Monetary Fund (IMF) urging El Salvador to drop bitcoin as legal tender during negotiations for a billion-dollar loan. Ulloa emphasized that if Bukele is reelected, the Bitcoin policies, including the launch of volcano bonds, will continue under his leadership. The volcano bonds are set to be issued during the first quarter of 2024. Ulloa expressed confidence in the law that declared bitcoin as legal tender, stating that it enjoys global credibility.

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Bitcoin policies to continue under Bukele’s leadership

The victory of President Nayib Bukele in the upcoming elections will contribute to the continuation of El Salvador’s Bitcoin policies. These policies include the law that declared bitcoin as legal tender. Despite facing criticism and opposition from various groups, Bukele’s administration remains committed to promoting bitcoin adoption in the country. The government’s decision to maintain bitcoin as legal tender reflects its confidence in the cryptocurrency and its potential to drive economic growth and financial inclusion in El Salvador. The continuity of these policies under Bukele’s leadership is expected to further strengthen the position of bitcoin in the country’s economy.

Launch of volcano bonds during the first quarter of 2024

El Salvador is preparing to launch volcano bonds during the first quarter of 2024. These bonds are part of the government’s efforts to leverage the potential of bitcoin and blockchain technology for economic development. The volcano bonds will be issued using bitcoin, and the funds raised will be used to support various infrastructure projects in the country. This innovative approach to fundraising highlights El Salvador’s commitment to embracing new technologies and leveraging them for economic growth. The launch of volcano bonds represents an exciting opportunity for investors and showcases El Salvador’s forward-thinking approach to finance and technology.

Law declaring bitcoin as legal tender to be maintained

The law that declared bitcoin as legal tender in El Salvador will be maintained, according to Vice President Felix Ulloa. This decision demonstrates the government’s determination to continue promoting the use of bitcoin for everyday transactions and as a store of value. Despite facing some challenges and criticisms, El Salvador remains committed to this groundbreaking legal framework for bitcoin. The government believes that recognizing bitcoin as legal tender will enhance financial inclusion, attract investment, and drive economic growth. By maintaining the law, El Salvador aims to lead the way in embracing cryptocurrencies and blockchain technology.

Bitfinex launches operations in El Salvador

Bitfinex, a leading cryptocurrency exchange, has announced the launch of its operations in El Salvador. The exchange is expanding its services to cater to the growing demand for cryptocurrency-based products in the country. With the government’s support for bitcoin as legal tender, El Salvador has become an attractive market for crypto companies like Bitfinex. The launch of Bitfinex’s operations in El Salvador further solidifies the country’s position as a hub for cryptocurrency innovation in Latin America. This development is expected to contribute to the overall growth and adoption of cryptocurrencies in the region.

President Javier Milei Drops Crypto Tax Opportunities From Omnibus Bill

Argentine government withdraws opportunities for declaring ownership of certain assets

The Argentine government has decided to withdraw the opportunities for declaring ownership of certain assets, including cryptocurrencies, from the omnibus bill presented to Congress. This decision comes as part of the government’s efforts to expedite the approval of the bill, which seeks to advance reforms in various areas and grant legislative powers to President Javier Milei. The exclusion of crypto tax matters from the bill reflects the government’s focus on prioritizing other aspects of the proposed legislation. While this decision may disappoint some crypto enthusiasts, it aims to ensure the swift passage of the bill and facilitate economic development.

Bill seeks to advance reforms and give legislative powers to President Javier Milei

The omnibus bill titled “Law of Bases and Starting Points for the Freedom of Argentines” represents a comprehensive legislative proposal that seeks to advance reforms in several areas of governance and grant President Javier Milei greater legislative powers. The bill encompasses various aspects of economic, social, and political reforms with the aim of fostering freedom and promoting economic development in Argentina. By giving Milei more legislative powers, the government aims to streamline decision-making processes and expedite the implementation of key reforms. The bill represents a bold and ambitious step towards reshaping Argentina’s governance and promoting freedom and prosperity.


Withdrawn issues dropped for faster bill approval

The Argentine government decided to withdraw certain issues from the omnibus bill to expedite its approval. The withdrawn matters, including crypto tax opportunities, were dropped due to a lack of consensus and potential delays in addressing them. Guillermo Francos, the Minister of Interior, emphasized the government’s focus on generating freedom for economic development and the need to prioritize other aspects of the bill. While the exclusion of crypto tax matters may disappoint some stakeholders, it is important to note that the bill covers a wide range of reforms that are expected to have a significant impact on the country’s economic and social landscape.

Venezuela Hit by Reenactment of Gold Sanctions

OFAC revokes license allowing Venezuelan state-owned gold company to participate in international markets

The U.S. Treasury Office of Foreign Assets Control (OFAC) has revoked a license that previously allowed CVG Compania General de Mineria de Venezuela CA (Minerven), the state-owned gold company in Venezuela, to participate in gold transactions in international markets. This move represents a reenactment of sanctions on the Venezuelan gold sector. The decision by OFAC reflects the ongoing concerns about the governance and transparency of Venezuela’s gold industry. By revoking the license, the U.S. aims to exert pressure on the Venezuelan government and encourage reforms in this sector.

U.S. threatens to reenact oil and gas-related sanctions

In addition to the reenactment of gold sanctions, the U.S. has threatened to impose oil and gas-related sanctions on Venezuela if the government fails to review the participation of key opposition figures in the upcoming presidential ballot by April. The U.S. State Department has stated that these potential sanctions would be implemented to hold the Venezuelan government accountable for its actions. The threat of oil and gas sanctions highlights the importance of political and electoral processes in determining the future of U.S.-Venezuela relations. The response of the Venezuelan government to these threats will play a crucial role in shaping the country’s economic and diplomatic landscape.

President of the National Assembly responds to U.S. government

Jorge Rodriguez, the president of the National Assembly in Venezuela, defiantly responded to the U.S. government’s threats, calling on them to immediately apply the proposed sanctions. Rodriguez’s strong statement reflects the government’s resistance to external pressure and its determination to maintain its sovereignty. The response emphasizes the complex and tense relationship between the U.S. and Venezuela, with political and economic issues often intersecting. The U.S. government’s stance on the upcoming presidential ballot and the Venezuelan government’s response will continue to shape the dynamics between the two countries and impact the Venezuelan economy.

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