Javier Hernandez Welcome to Latin America Snapshot, your weekly digest of the most significant crypto and economic events across Latin America. This week, Tether reveals its plans to initiate a green Bitcoin mining project in Uruguay, Brazil’s President Lula suggests a move away from the U.S. dollar, and Argentina accelerates its efforts to reduce dollar dependency.
Tether Introduces Green Bitcoin Mining Initiative in Uruguay
Tether, the firm responsible for the issuance of the largest stablecoin by market capitalization, has unveiled its plans for a new environmentally friendly Bitcoin mining venture in Uruguay. In line with its recent foray into the energy industry, Tether expressed its commitment to investing in renewable energy to facilitate and encourage sustainable Bitcoin mining, a critical element in maintaining the world’s most secure and resilient monetary network.
Tether opted for Uruguay for its venture due to the country’s unique attributes, highlighting that “a significant majority of Uruguay’s energy production is derived from renewable sources, creating an optimal setting for our energy-intensive operations.”
On this note, Tether’s CTO Paolo Ardoino shared:
Our steadfast dedication to renewable energy ensures that every Bitcoin we mine has a minimal environmental impact while preserving the safety and integrity of the Bitcoin network.
President Lula Suggests Latin America to Move Away from the U.S. Dollar for Bilateral Transactions
Brazil’s President Luiz Inacio “Lula” da Silva suggested the implementation of alternative currencies to phase out the use of the U.S. dollar for bilateral transactions within the region. At a summit inauguration in Brasilia attended by 11 South American presidents, Lula conveyed:
We should also bolster our South American identity in the monetary realm via more efficient compensation mechanisms and the establishment of a common trade reference unit, thus reducing reliance on currencies outside our region.
Lula is a strong advocate for reducing dollar dependency, having recently detached from the international pricing standard in the Brazilian fuel market and actively supporting the introduction of a BRICS bloc currency.
Argentina Intensifies De-Dollarization Efforts; Increases Access to Chinese Swap Line
The Argentinian government succeeded in enlarging a credit line in Chinese yuan to $19 billion with the Chinese government, providing $10 billion for unrestricted management. The expansion of this credit line is crucial for Argentina, which is currently experiencing a dollar shortage and conserving its foreign reserves.
The extension agreement was signed by the Central Bank of Argentina’s President Miguel Pesce and Yi Gang, governor of the People’s Bank of China (PBOC). The agreement also permits the Argentinian government to promote the use of the Chinese yuan in its domestic financial market, which is provided the same safeguards as the U.S. dollar, as stated by the Central Bank of Argentina.
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Table Of Contents
Frequently Asked Questions (FAQs) about Latin America Crypto News
What is Tether’s new project in Uruguay about?
Tether, the company that issues the largest stablecoin by market capitalization, is starting a sustainable Bitcoin mining project in Uruguay. They are investing in renewable energy sources for the Bitcoin mining process, upholding a sustainable approach within an energy-intensive industry.
Why has Tether chosen Uruguay for its Bitcoin mining operations?
Tether has chosen Uruguay because a significant majority of the country’s energy production is derived from renewable sources. This makes Uruguay an optimal location for their energy-intensive Bitcoin mining operations.
What is Brazilian President Lula’s proposal concerning the U.S. dollar?
Brazil’s President Lula is proposing a shift away from the U.S. dollar in bilateral settlements within the Latin American region. Instead, he suggests the use of alternative currencies and the creation of a common trade reference unit to reduce dependence on extra-regional currencies.
What recent moves has Argentina made to de-dollarize?
The Argentinian government expanded a credit line in Chinese yuan to $19 billion with the Chinese government, making $10 billion available for unrestricted management. This move is seen as a part of Argentina’s efforts to reduce dollar dependency.
How can I keep up with the latest developments in Latin America’s crypto and economy?
You can sign up for the Latin America Snapshot newsletter, which offers a weekly digest of the most significant crypto and economic events across Latin America.
More about Latin America Crypto News
- Tether’s Official Website: Tether
- Renewable Energy in Uruguay: Uruguay Ministry of Industry, Energy and Mining
- Official Website of the Government of Brazil: Brazilian Government
- Central Bank of Argentina: Central Bank of Argentina
- Latin America Snapshot Newsletter Sign-Up: Latin America Snapshot Newsletter
