El Salvador rescinded bitcoin’s legal tender status, Coinbase launched operations in Argentina for five million crypto users, and Hive Digital plans a significant expansion in Paraguay, increasing mining capacity to 300 MW by 2025.
Welcome to Latam Insights, offering a summary of significant crypto and economic developments across Latin America over the past week.
El Salvador has amended its legal framework regarding bitcoin to mitigate economic risks. The Salvadoran Congress, with a majority from President Nayib Bukele’s party, has repealed bitcoin’s legal tender status, making its acceptance by merchants optional and eliminating state obligations around bitcoin transactions and conversions.
In a notable expansion, Coinbase has officially launched in Argentina after obtaining regulatory approval from the country’s National Securities Commission. This new operational capacity allows Coinbase to engage with an estimated five million Argentine crypto users, enhancing financial independence in a nation marked by economic turmoil.
Hive Digital Technologies announced a substantial investment in Paraguay, valued at $56 million, aimed at dramatically increasing its bitcoin mining capacity. The company plans to develop a new site that will raise its operational capacity to 300 mega-watts and employ specialized technology to support this expansion by late 2025.
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The global economic landscape, particularly in Latin America, is increasingly intertwined with cryptocurrency. El Salvador initially set a precedent by adopting bitcoin as legal tender, prompting significant scrutiny and subsequent regulatory shifts. Meanwhile, Coinbase’s entry into Argentina highlights the growing domestic interest and necessity for cryptocurrency amidst economic challenges. Hive Digital’s investment in Paraguay illustrates the increasing demand for bitcoin mining infrastructure as the sector expands throughout the region.
In summary, El Salvador’s withdrawal of bitcoin’s legal tender designation showcases a shift towards economic stabilization amidst external pressure. Coinbase’s launch in Argentina marks an important step in enhancing access to cryptocurrencies in a struggling economy. Additionally, Hive Digital’s expansion in Paraguay underscores the persistent growth of bitcoin mining operations in response to increasing global demand.
Original Source: news.bitcoin.com
