Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: The Argentine peso reaches historic lows, Tether’s USDT accounts for more than 80% of the transactions in the Brazilian market, and Binance gets fully licensed in El Salvador.
Argentine Peso Sinks Before Elections
The Argentine peso sank to historic lows this week, reaching an exchange rate of 605 pesos per U.S. dollar. Economic analysts linked this accelerated devaluation with the uncertainty surrounding the general ballotage held on Sunday, where Argentines elected their candidates for the next elections.
Mateo Reschini, a research analyst for Inviu, explained that big capitals preferred to secure their investments in foreign currency to protect from possible fluctuations caused by the outcome of the ballotage. Reschini stated:
The market takes note of the relevance of the date of the upcoming elections and decides to be covered against possible exchange rate jumps, hand in hand with statements from economists, the IMF statement, and media rumors.
The plunge of the Argentine peso will also affect the August consumer price index (CPI). Private firms predict a 9%+ increase in the CPI this month, putting Argentina among the countries with the highest inflation worldwide.
Tether Dominated More Than 80% of the Brazilian Crypto Market During Q1 and Q2 2023
USDT, the largest stablecoin by market cap, was the biggest participant in the Brazilian cryptocurrency market during Q1 and Q2 2023. The Brazilian tax authority released data confirming that more than 80% of the transactions made during the first half of 2023 featured USDT. This means that more than 90 billion reales (almost $18.4 billion) were transacted using the stablecoin in Brazil.
Also, 3.2 million people purchased cryptocurrency last June, breaking a record high. Companies also registered all-time high numbers buying crypto.
Binance Becomes a Fully Licensed Exchange in El Salvador
Binance, the cryptocurrency behemoth, has announced it has become a fully licensed cryptocurrency exchange in El Salvador. It received two operational licenses: a Bitcoin Services Provider license (BSP) and a Digital Assets Services Provider license (DASP).
Min Lin, Binance head of Latin America, commented:
This announcement comes after many months of dedication from our team to provide all information and proceed with the necessary due diligence required by the agencies, showcasing our commitment to the Salvadoran market and our users.
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