Tag: Argentina

Argentina’s Buenbit Rolls Out Crypto Loan Products

by Blockchain News

Buenbit, an Argentina-based crypto exchange with operations in Mexico and Peru, announced on Monday that it has launched a local currency loan product that uses cryptocurrency as collateral.

In Argentina, customers will use MakerDAO’s stablecoin, DAI, as collateral and withdraw up to one million nuARS, a stablecoin tied to the Argentine peso, the firm said.

nuARS, a stablecoin developed by Num Finance, operates on Binance’s blockchain.

Federico Ogue, Buenbit’s CEO, described the crypto loan product as the first of this nature in Latin America. Ogue further commented: “It is a model that emerged abroad but with loans in U.S. dollars, but it does not work for Latin Americans. Who wants to borrow U.S. dollars in the region? Too much risk.”

Buenbit said customers can borrow for loans provided they collateralized 80% of the requested amount and added that the DAI will be locked into the platform yielding returns.

Users will be able to use nuARS to buy other cryptocurrencies on the Buenbit platform, withdraw or spend them via the prepaid card offered by the exchange, the firm stated.

Buenbit said that it plans to launch a similar loan product in Peru through a partnership with Num Finance. This will come through once Num Finance launches nuPEN and nuMXN, two stablecoins tied to the Peruvian and Mexican currencies.

Apart from the crypto loan product, Buenbit disclosed that it is in talks with investors to raise a new funding round in the third quarter of 2022. Ogue said the funding would be smaller than the $11 million Series A that the company raised in July 2021.

“This is a smaller round so as not to commit to a scenario of uncertainty. We will wait to do a bigger round next year with a clearer picture,” Ogue explained.

Buenbit also plans to expand its presence in Gibraltar once it obtains an exchange license in three months, following an 18-month process. Bitso, a crypto exchange based in Mexico, holds a similar license.

Tech Firms Impacted by Inflation Crisis

In May, Buenbit laid off about 80 employees of its workforce – 45% of its staff because of the current economic challenges that are impacting the tech industry. During that time, Ogue clarified that the layoffs were not linked with the collapse of UST and LUNA.

Buenbit also suspended its plans to expand into new countries, including Chile and Colombia, due to the “global overhaul” of the tech industry.

In May, Latin American crypto exchange Bitso also laid off 80 employees. The crypto business is currently witnessing turbulent times triggered by the ongoing crypto winter that has forced many tech firms to shut down operations and put a freeze on hiring.

Crypto markets are struggling to thrive after a series of economic events set in like the Luna Terra crash, higher interest rates by Feds coupled with regulatory uncertainty and investors pulling away from the markets.

Image source: Shutterstock

Source

Tagged : / / / / /

Argentinians Seek Shelter in Stablecoins after Economy Minister Resignation

by Blockchain News

Argentinians have taken refuge in stablecoins after the nation’s economy minister Martin Guzman resigned over the weekend attributed to the financial crisis crushing the South American country, reports said.

Due to the continuous inflation, Devaluation continues to undermine the Argentine peso (ARS). Three leading crypto exchanges have seen a trend where consumers are looking for hedges, for instance, the peso depreciated by nearly 15% against various stablecoins like Tether (USDT) and MakerDAO (DAI) on leading local crypto exchanges after Guzman resigned. 

Therefore, according to reports, Argentinians purchase stablecoins two to three times more than is the case on a typical weekend. Per the report:

“Argentine exchange Buenbit recorded a 300% increase in trading on Sunday compared to the same day in previous weeks.”

Sebastian Serrano, the CEO of cryptocurrency exchange Ripio, noted that Argentinians have resorted to the crypto market if uncertain news emerges. Serrano added:

“Whenever there is one of these news stories in Argentina, because of the 24/7 nature of crypto, it is the first market where Argentina starts to look for a price for the U.S. dollar. This drives volumes up.” 

With inflation hitting 60% on a year-over-year basis, Guzman’s resignation was fuelled by the lack of a precise economic direction as differences between the president and vice president took centre stage. 

As a result, Argentinians have been seeking shelter in digital assets despite the nation recently halting crypto operations undertaken by financial institutions. 

Depending on different regulations, crypto usage is speculated to continue rising in Argentina because cryptocurrency is deemed a hedge against a cyclical economic crisis that includes hyperinflation, recession, and repeated currency devaluations.

Image source: Shutterstock

Source

Tagged : / / / / / / / /

Argentina Halts Crypto Operations Undertaken by Financial Institutions

by Blockchain News

Days after Argentina’s largest private bank Banco Galicia opened crypto trading services, the nation’s central bank cracked the whip by banning financial institutions from carrying out crypto transactions.  

The central bank noted that its decision to stop crypto transactions in the entire financial sector was reached to “mitigate the risks” involved when using digital assets, such as money laundering, cyberattacks, and high volatility. 

Financial institutions will only be allowed to finance investment, consumption of goods and services, and production. Argentinians, therefore, will lose opportunities to undertake crypto operations through banks as the blanket ban on unregulated digital assets takes effect. 

Recently, Banco Galicia rolled out the new service based on growing demand. It was to enable users to buy, send, and receive Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and USD Coin (USDC). 

To tame runaway inflation, Argentinians have been seeking shelter in crypto. 

This can be illustrated by the fact that Argentina is among the world’s top 10 nations with the highest crypto adoption rates. Therefore, the latest development is a big blow.

With annual inflation rates surging by more than 50%, crypto exchange Lemon Cash had stipulated that it would roll out three million Visa crypto cards earlier this year. 

Franco Bianchi, the chief marketing officer at Lemon Cash, said:

“Latin America is a good place for these services. Several of the countries have unstable economies and devalued currencies, and the people seek access to cryptocurrencies as a refuge.”

Economists speculate that the inflation rate on Argentinian soil will hit 55% this year from the current 50.7%. 

Therefore, the crypto ban will undermine Argentinians because they were using cryptocurrencies as hedges against a cyclical economic crisis that includes a recession, hyperinflation, and repeated currency devaluations. 

Image source: Shutterstock

Source

Tagged : / / / / / /

Argentinian Private Bank Banco Galicia Opens Cryptos Trading Service

by Blockchain News

Banco Galicia (NASDAQ: GGAL), Argentina’s largest private bank by market share, has announced that it will allow its users to buy cryptocurrencies such as bitcoin on its mobile app.

The bank has added a new feature by establishing a partnership with a Lirium-based cryptocurrency infrastructure company Lirium, that enables banks and digital wallets to buy, sell, send and receive (BTC), ether (ETH), USDC, and XRP.

The company also said it will continue to expand the cryptocurrencies and offer custody capabilities while hoping to roll out the service to all customers by mid-May.

Currently, Banco Galicia only allows users the ability to buy and sell cryptocurrencies, but not withdraw or send cryptocurrencies, according to Lirium COO Martin Kopacz.

Annual inflation rates have been going through the roof in Argentina by surging more than 50%. Argentinians, therefore, have resorted to transacting in cryptocurrencies to tame runaway prices.

Crypto usage is speculated to continue rising in Argentina because cryptocurrency is deemed a hedge against a cyclical economic crisis that includes hyperinflation, recession, and repeated currency devaluations.

Image source: Shutterstock

Source

Tagged : / / / /

Argentinians Seek Shelter in Crypto, while Local Inflation Surges over 50%

by Blockchain News

Annual inflation rates have been going through the roof in Argentina by surging more than 50%. Argentinians, therefore, have resorted to transacting in cryptocurrencies to tame runaway prices.

Lemon Cash, a crypto exchange, is aiding in these efforts by offering Bitcoin reward cards that were first rolled out in November, according to Bloomberg.

Franco Bianchi, the chief marketing officer at Lemon Cash, stated:

“Latin America is a good place for these services. Several of the countries have unstable economies and devalued currencies, and the people seek access to cryptocurrencies as a refuge.”

The demand for the Visa cards, which convert the stipulated cryptocurrency to pesos when making payments, is so high that Lemon Cash intends to increase issuance to three million this year. 

Initially, the crypto exchange had rolled out 100,000 cards, with each purchase guaranteeing the cardholder a 2% cashback in Bitcoin. 

The report noted:

“While the cards have been seen as a marketing tool elsewhere, they’re being used in the nation to help temper the impact of surging prices. Argentines fear and seek cover against an accelerating inflation rate that is already the fourth highest in the world, after Venezuela, Lebanon and Zimbabwe.”

The inflation rate on Argentinian soil does not seem to be slowing down because economists speculate it will hit 55% this year from the present 50.7%. 

The issuance of crypto cards is in high gear in the region, with Ripio, a digital wallet provider, having at least three million users, mainly in Brazil and Argentina. 

Therefore, crypto usage is speculated to continue rising in Argentina because cryptocurrency is deemed a hedge against a cyclical economic crisis that includes hyperinflation, recession, and repeated currency devaluations. 

Meanwhile, Bitcoin miners in Argentina are thriving because of ultra-low utility rates and a surge in capital controls. 

Image source: Shutterstock

Source

Tagged : / / / / / /

Top Latin American exchange Bitso officially expands to Colombia

by Cointelegraph

Bitso, a major Latin American cryptocurrency exchange and El Salvador’s crypto wallet assistant firm, has announced its formal launch in Colombia.

As part of Bitso’s development strategy in Colombia, the exchange has hired former Mastercard executive Emilio Pardo as new country manager, the firm announced to Cointelegraph on Thursday.

Pardo is former head of business development for the Andean Region at Mastercard, where he focused on fintech issues like instant and cross-border financial transactions and open banking. He will now be responsible for developing Bitso’s strategy in Colombia to increase the local crypto adoption and financial inclusion, focusing on Bitso’s strategic basics including education and security.

According to Pardo, Latin America is now going through one of the most important moments in the adoption of cryptocurrencies, and Colombia is not an exception. The growing crypto adoption will not only benefit Colombia’s financial ecosystem, but will also help educate and address the needs of our customers and fellow citizens, he noted.

Bitso’s Colombian operations are regulated by a major local financial authority, the Superintendencia Financiera de Colombia, or SFC. According to the announcement, the SFC granted Bitso with authorization to operate within la Arenera, the regulatory framework of its sandbox and crypto pilot program in late 2021.

Under this framework, Bitso started working in partnership with Colombia’s first commercial bank, Banco de Bogotá, in 2021 to trial the exchange’s products and services.

“As an end-to-end regulated crypto platform, we can ensure that this opportunity is putting Colombia at the forefront of innovation and regulation,” Pardo said. He added that the crypto exchange is testing its products within a regulation framework that takes into consideration the entire ecosystem of financial services, including banks, exchanges, regulators and end users.

Related: Colombia clamps down on crypto tax evasion as adoption thrives

Founded in 2014 in Mexico, Bitso is one of the biggest crypto exchanges in Latin America, allowing users to buy and sell cryptocurrencies like Bitcoin. The exchange has been growing massively in recent years, expanding to Argentina in February 2020 and then entering Brazil in April 2021.

The exchange is also present in El Salvador, which officially adopted Bitcoin as legal tender in September 2021. Bitso specifically cooperated with Silvergate to facilitate United States dollar transactions for El Salvador’s official Bitcoin (BTC) wallet, Chivo wallet, at launch.