BeInCrypto's comprehensive Latin American Cryptocurrency Roundup brings you the most important news and trends from Latin America. We cover the latest updates and insights from the cryptocurrency industry in the region with reporters from Brazil, Mexico, Argentina and beyond.
This week, we cover stories about Helium's expansion into Mexico and World Coin's expansion into Ecuador.
Venezuelan cryptocurrency community's reaction to the suspension of Solacebot service
Solacebot's sudden closure sparked outrage among Venezuelan users and raised serious concerns in the cryptocurrency community. Solacebot, which was promoting itself as an automated cryptocurrency trading tool, announced the suspension of its services on June 16, citing “operational issues.” Vague explanations and prolonged outages raised suspicions that it was a Ponzi scheme.
Solsbot quickly gained the trust of many Venezuelan investors by boasting high returns andartificial intelligence-based technology. The platform has generated significant profits by leveraging the volatility of the cryptocurrency market by facilitating complex transactions without human intervention. However, the recent discontinuation of this platform has been met with criticism and condemnation on social media.
Read more: 15 most common cryptocurrency scams to watch out for
There are claims that Solacebot is a Ponzi scheme that uses funds from new investors to pay existing users, showing unsustainable profitability. Some analysts believe the closure is a sign of a potential bubble in Venezuela's cryptocurrency sector, especially platforms that promise high returns with little transparency.
The crypto lawyer said he was “disappointed and angry at how far Latin America is falling behind when it comes to financial education… “Greed and ignorance will continue to do their work,” he said strongly.
In short, the collapse of Solesbot has left many Venezuelan investors in an unstable situation, questioning the viability and safety of cryptocurrency investments. The cryptocurrency community remains vigilant, awaiting action from companies to resolve this crisis and restore user trust.
Javier Millais reiterates the possibility of using Bitcoin in Argentina
In a recent statement, Argentine President Javier Millais reaffirmed his government's commitment to allowing free competition in currencies, including Bitcoin.
“There will be free competition among currencies, so if you want to use Bitcoin, there will be no problem,” President Millay said . “You can also use other units that best suit your business, such as WTI or BTU. Accounting can be solved using the functional currency approach.”
This policy appears to be inspired by the government of Naib Bukele in El Salvador, which legalized the free circulation of Bitcoin. But Argentina's situation presents unique challenges. Argentina is struggling with ongoing inflation and tax uncertainty related to cryptocurrencies. Additionally, Argentines appear to prefer stablecoins as a store of value over Bitcoin.
Read more: Cryptocurrency adoption in Argentina: Everything you need to know
Despite these obstacles, Millais is determined to integrate Bitcoin into the Argentine economy in his own way. But his administration has faced criticism. In early 2024, Millay received backlash from the cryptocurrency community, including in El Salvador, for caving in to the Financial Action Task Force (FATF) by creating stricter regulations for virtual asset service providers (VASPs).
Allowing free currency competition in Argentina could mean big changes for the country's economy, especially amid high inflation and economic uncertainty. The successful implementation and acceptance of these measures will remain to be seen in the coming months.
Helium expands coverage in Mexico
Helium, a decentralized wireless blockchain network based in Solana, announced the expansion of its network in Mexico through a partnership between Helium Mobile and LongFi Solutions. Through this collaboration, a mobile network will be built in Oaxaca, Mexico.
The Helium Foundation aims to test and demonstrate the effectiveness of community-based infrastructure in improving connectivity. This network expansion project aims to address connectivity gaps by focusing on underserved areas.
Helium emphasized that the Oaxaca expansion demonstrates the potential of decentralized wireless technology in the telecommunications sector. These infrastructure improvements significantly improve existing mobile services and lay the foundation for future mobile network providers.
“For residents, Helium’s mobile hotspot has made a transformational difference. Communities previously plagued by unreliable mobile service can now enjoy reliable, high-speed connectivity,” says the Helium Foundation. “These improvements have brought about changes that have contributed to the growth of the Helium Network by facilitating communication, expanding access to information, and creating new opportunities.”
Read more: What is DeFin (Decentralized Physical Infrastructure Network) ?
The device connects to the Helium network via a hotspot to ensure uninterrupted service. This is not Helium's first expansion into Mexico; earlier this year, it partnered with Telefonica to introduce a mobile hotspot.
In January, Telefónica partnered with decentralized communications companies Nova Labs and Helium to install mobile hotspots in Mexico. This pilot project integrated Helium’s decentralized blockchain technology to serve customers in Oaxaca and Mexico City. The device enabled secure and controlled offloading of mobile data traffic over the Helium network via a SIM card.
“This program in Mexico is critical to evaluating the performance of this solution, customer satisfaction and associated costs,” the statement said. “If this program is successful, we expect to be able to integrate it into our mobile network portfolio across multiple countries in the region.”
Helium's efforts in Mexico demonstrate the potential of decentralized networks to solve connectivity problems in underserved areas, promising a future of improved communication and information accessibility.
El Salvador's President Nayib Bukele proposes establishing a Bitcoin bank
El Salvador's President Nayib Bukele has proposed establishing a private investment bank that would operate in Bitcoin and dollars. The measure is part of President Bukele's broader economic plan following his re-election .
“As part of El Salvador’s economic plan, we propose the establishment of BPI, a private investment bank that will be able to diversify the financing options available to potential investors in dollars and Bitcoin,” said Milena Mayorga, Ambassador of El Salvador to the United States.
Read more: Cryptocurrency vs Banking: Which is the smarter choice?
Max Kaiser, Bukele's senior advisor on Bitcoin issues, believes this move could significantly accelerate El Salvador's economic growth. He noted that this could push Cathy Wood's GDP growth forecast higher.
But Bukele's proposal has not yet been approved by the legislature. The Technology, Tourism and Investment Committee must review and vote on the plan. Although no final decision has been made on establishing a Bitcoin bank in El Salvador, this proposal alone demonstrates the country's serious commitment to Bitcoin integration.
World Coin launched in Ecuador
WorldCoin has officially launched in Ecuador, solidifying its presence in the Latin American market. This strategic move is part of a broader expansion plan to strengthen local cryptocurrency adoption.
Worldcoin's expansion into Ecuador comes amid a surge in interest in cryptocurrencies driven by demand for financial alternatives amid economic volatility. WorldCoin’s potential impact extends beyond cryptocurrency adoption to fostering an ecosystem of startups and entrepreneurs who see cryptocurrency as an opportunity for innovation.
“You can receive verification at six locations in two cities in Ecuador, starting with the port city of Guayaquil on June 26th and ending with the capital Quito a day later on June 27th. “Anyone over the age of 18 who is interested in joining the 5,778,467 participating members of the Worldcoin network can verify their World ID at one of these locations,” explains Worldcoin’s official statement .
Read more: How to Buy WorldCoin (WLD) and Everything You Need to Know
Worldcoin’s expansion in Latin America doesn’t stop in Ecuador. WorldCoin has expanded World ID authentication to other regional markets, including Mexico, Peru, and Colombia. Additionally, we are working to expand World Coin's influence and scope by announcing the opening of 50 branches in 10 cities in Argentina.
Latin American Lithium Chamber of Commerce and Paraguay agree to tokenize mining
The Latin American Lithium Chamber (Calvamerica) and the Government of Paraguay have signed an agreement to increase transparency in mining transactions. The plan aims to prevent large corporations from under-invoicing minerals when they mine them, by leveraging blockchain technology to tokenize mining assets.
Calvamerica Chairman Pablo Rutigliano said on social media that the agreement includes a plan to use blockchain to increase jobs and economic growth in the region. The partnership aims to develop the lithium industry and corporate energy use, digitize contracts, and strengthen Paraguay's mining approach through mining tokenization.
“This agreement is not only an opportunity for growth for Paraguay, but also an example for the region in addressing energy transition issues innovatively and collaboratively,” explains Rutigliano. “This demonstrates the Paraguayan government’s commitment to a development vision supported by experts in the lithium and sustainable energy fields.”
Read more: Will Cryptocurrency Mining Be Profitable in 2024 ?
Recently, Paraguay's Minister of Industry and Trade, Javier Jimenez, revealed that President Santiago Peña's administration is aiming to legalize cryptocurrency mining in the country to attract foreign industry. Paraguay has enough energy for 10,000 new industries, but faces potential delays, according to Gimenez. Paraguay has been trying for months to regulate cryptocurrency mining to attract foreign direct investment.
As Latin America's cryptocurrency industry grows, these examples demonstrate the country's growing influence in global markets. From the Argentine president’s Bitcoin ambitions to Calvamera’s alliance with Paraguay, Latin America is establishing itself as a key player in the tech world. Stay tuned for more updates and insights in next week's recap.
