Latam Insights: Argentina Reaches Zero Inflation, Central Bank of Bolivia Unbans Bitcoin
Welcome to Latam Insights, your go-to source for the most important crypto and economic news from Latin America this past week. In this issue: Argentina achieves zero inflation in food and beverages, the Central Bank of Bolivia lifts its Bitcoin ban, and Paraguayan power company employees are allegedly involved in illegal Bitcoin mining.
Argentina Records Zero Inflation in Food and Beverages; Milei Claims Economic Victory
Argentina is celebrating a rare economic victory, recording zero inflation in food and beverages for the first time in 30 years during the third week of June. Data from Econometrica, a private consulting firm, revealed that prices of over 8,000 items in various online stores remained unchanged from the previous week.
This milestone suggests that President Javier Milei’s stringent fiscal policies are beginning to bear fruit. Since taking office, Milei has aggressively targeted inflation, which has shown signs of slowing down. Econometrica projects that the monthly inflation rate for this category may settle at 2.4% in June.
Despite this progress, Milei’s administration faces a significant challenge ahead. Argentina still grapples with one of the highest inflation rates globally, with an annual price increase of 276.4%.
Central Bank of Bolivia Unbans Bitcoin, Ushering in a New Era for Crypto
In a groundbreaking move, the Central Bank of Bolivia has lifted its ban on Bitcoin, marking a pivotal shift in the country’s financial landscape. Resolution N°082/2024, issued on Tuesday, repeals the previous prohibition that barred financial institutions from engaging in crypto-related transactions. This resolution opens the door for financial intermediaries to facilitate crypto payments.
Previously, Resolution N°144/2020, enacted in December 2020, had effectively shut out cryptocurrencies by prohibiting financial institutions from handling crypto transactions. The Central Bank had cautioned citizens against using digital assets due to the lack of guarantees in cases of fraud or loss.
Allegations of Illegal Bitcoin Mining by National Power Administration Employees in Paraguay
In Paraguay, a scandal is unfolding as seven engineers from the National Power Administration (ANDE) are suspected of setting up illegal Bitcoin mining operations. Reports suggest these employees organized unauthorized connections to power Bitcoin mining farms.
Felix Sosa, President of ANDE, has confirmed that the institution’s internal audit unit is conducting a thorough investigation. All relevant information has been handed over to the national prosecutor’s office. Sosa noted that ANDE employees have not been responsible for executing electrical connections for some time, as this task has been outsourced to third-party contractors.
Stay tuned to Latam Insights for more updates on these developing stories.
