El Salvador Reaffirms Support for Bitcoin

Latam Insights: Milei Removes Crypto From Omnibus Bill, El Salvador Reaffirms Support for Bitcoin

KryptoLenz - Kaeshi
KryptoLenz - Kaeshi

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Welcome to Latam Insights 💙!!

So, what happened ??

A summary of the most important cryptocurrency and economic news from Latin America during the last week. This issue includes the following: Argentine President Javier Milei removes cryptocurrency tax issues from the Omnibus Bill, El Salvador will strengthen its commitment to Bitcoin if President Bukele is reelected, and Venezuela will be subject to gold sanctions.

El Salvador will continue to accept Bitcoin as payment

In an interview with Reuters on Wednesday, Vice President Felix Ulloa of El Salvador stated that even though the International Monetary Fund (IMF) has once again urged the nation to remove bitcoin as legal tender during loan negotiations worth billions of dollars, El Salvador will continue to accept the cryptocurrency as legal tender during President Nayib Bukele's second term.

Ulloa explained that Bukele's win in the next elections will help to keep Bitcoin policies in place, such the introduction of the volcano bonds, which are scheduled to be released in the first quarter of 2024. Regarding the legislation that made bitcoin accepted as money in El Salvador, Ulloa said:

"Not only will it (the law) be maintained … At this moment, it enjoys the greatest credibility in the entire world."

In an effort to capitalize on the growing confidence in El Salvador's digital future, Bitfinex just opened for business there as a digital securities tokenization firm.

Omnibus Bill's Crypto Tax Opportunities Are Dropped by President Javier Milei

The omnibus measure the Argentine administration sent to Congress this month no longer includes the option to declare ownership of certain assets, including cryptocurrency. The "Law of Bases and Starting Points for the Freedom of Argentines" bill aims to promote changes in a number of sectors, including giving President Javier Milei legislative authority.

Since there was no agreement on the withdrawn concerns, the administration decided to eliminate these and other portions of the bill in order to expedite the bill's adoption. The interior minister, Guillermo Francos, said:

"The proposal is aimed at generating freedom for economic development. It was essential to get this out quickly. The tax part was smaller and delayed treatment."

The Reenactment of Gold Sanctions Affected Venezuela

The license that permitted CVG Compania General de Mineria de Venezuela CA (Minerven), the state-owned gold firm in Venezuela, to participate in gold transactions on foreign markets has been canceled by the U.S. Treasury Office of Foreign Assets Control (OFAC). When an agreement was struck with Maduro's regime to consider the inclusion of important opposition members in the forthcoming presidential poll, the United States agreed to lift the sanctions on Minerven back in October.

Furthermore, the U.S. State Department threatened to reinstate further sanctions pertaining to oil and gas in the event that the Venezuelan government failed to evaluate this involvement by the end of April. The National Assembly's president, Jorge Rodriguez, boldly demanded that the United States government impose the penalties right away.


KryptoLenz - Kaeshi

Passionate about the transformative potential of blockchain technology and cryptocurrencies, KryptoLenz is a dedicated content creator specializing in simplifying complex concepts in the crypto space.