Key Developments in Latin American Cryptocurrency
This week, several significant developments in the cryptocurrency space have taken place across Latin America, with notable actions from Argentina, Brazil, and El Salvador. These events highlight the region’s growing interest in digital finance and its potential to reshape financial systems.
Fintech Setback in Argentina’s Salary Deposit Reform
A proposed labor reform that would have allowed employees to receive their salaries directly into digital wallets was initially supported by Argentina’s fintech industry. However, lawmakers ultimately removed the clause, which many saw as favoring traditional banks. Despite surveys showing that a majority of Argentines prefer the option to choose where their paychecks are deposited, the party of President Javier Milei agreed to eliminate the clause to gain broader support for the law.
As a result, employees are still required to receive their pay through conventional bank accounts. This situation has been exacerbated by the low percentage of Argentines with bank accounts—only 47%, according to a 2022 central bank survey. The lack of trust in traditional financial institutions stems from past issues such as the 2001 “corralito,” ongoing inflation, and frequent restrictions on accessing funds.
In response, fintech platforms have become a vital alternative for financial access. Many users now rely on apps like Mercado Pago, Modo, Ualá, and Lemon as their primary gateway to official digital finance.
Brazil Considers a Strategic Bitcoin Reserve and Crypto Tax Exemption
A report presented to the Chamber of Deputies Economic Development Committee in Brazil could significantly shift the country’s approach to Bitcoin. The plan includes removing taxes on cryptocurrency gains and establishing a Sovereign Strategic Bitcoin Reserve (RESBit).
Proposed by Congressman Luiz Gastão, rapporteur of Bill 4,501/2024, the new language aims to modify the regulation of the cryptocurrency industry, including changes to oversight and reporting guidelines. Under the proposal, the federal government could purchase Bitcoin over time, up to a maximum of 5% of the country’s foreign exchange holdings.
The Ministry of Finance and the Central Bank would manage these assets, which would be stored in cold wallets for security. Additionally, the law would repeal an existing rule requiring brokers and investors to register all cryptocurrency transactions and allow the payment of federal taxes in Bitcoin.
Bitcoin is positioned as a strategic reserve that could underpin Brazil’s digital currency, the Drex. It also offers a complete income-tax exemption on gains from Bitcoin and other digital assets.
Strategic Alliance Aims to Tokenize $100 Million for Salvadoran SMEs
In an effort to direct $100 million in foreign direct investment into small and medium-sized businesses (SMEs) in El Salvador by 2026, Corporación Infinito (COIN) and Stakiny have formed a strategic alliance.
Through an integrated infrastructure that combines financial structuring, regulatory compliance, and blockchain technology, the initiative aims to use regulated tokenized equity instruments to connect local businesses with global finance. According to Antonio Arrué, vice president of COIN, the project seeks to attract institutional investors and foreign capital looking to use digital investment methods to support the growth of Salvadoran firms.
Stakiny, a platform seeking approval from the National Commission of Digital Assets to tokenize equity in private enterprises, will provide the technological foundation. The model will link traditional shareholder agreements with digital tokens registered on-chain, offering real-time cap table management, dividend distribution, governance events, and secondary trading.
To enable tokenized investing for both crypto-native and conventional investors, the platform operates on an EVM-compatible network and can be accessed via a mobile wallet with biometric authentication.