Latin America - Azteca / Herbert / PRD / Lacava / Galipolo
Critical Policy Intelligence for Latin America Bitcoin & Blockchain
I hope you enjoyed a relaxing holiday - if you took one. Welcome back and thanks again for reading this week’s Barracuda Briefing.
In case you missed it, here are the latest Barracuda Insights (for paying subscribers) to keep you up-to-date:
Argentina’s Finance Minister Sergio Massa discussed the SUR digital currency initiative for cross-border trade with Brazil’s FinMin Fernando Haddad | 4 January 2023
Russia made blockchain infrastructure a priority in talks with Venezuela’s Maduro | 21 December 2022
Trolls, Exiles & Sanctions threaten Nayib Bukele’s Bitcoin Policy | 14 December 2022
Ricardo Salinas Pliego is grooming a second Senator for his Bitcoin ambitions | 7 December 2022
El Salvador’s Digital Securities Legislation & Bitcoin Office | 30 November 2022
Here is the most critical policy intelligence from this week if you are a Bitcoin, blockchain and/or financial technology professional making important decisions on Latin America.
Mexican Bitcoin advocate Salinas Pliego says that Felipe Calderón (PAN 2006-2012) was the worst president in Mexican history. The wily business leader’s candor might be part of an interest in shaking up the political board ahead of 2024 presidential elections - he wants a Bitcoin-first president to further his own interests. Salinas Pliego also described Banco Azteca as his most important business, with 23 million clients and 18 million on digital platforms. Salinas Pliego’s Grupo Elektra (the parent company of Azteca) serves primarily middle and lower middle class customers. Around half of Mexico’s remittance market moves through Banco Azteca’s infrastructure and services.
El Salvador’s Bitcoin ambassador Stacy Herbert opened a Bitcoin Office on 3 January. The timing is interesting because El Salvador’s $800 mn in 2023 euro bonds comes due on 24 January 2023. Bukele is attempting to raise money through a Bitcoin-backed volcano bond and other sources.
El Salvador managed to get a $450 mn loan from the Central American Bank for Economic Integration (BCIE) in late December. The money will be available to draw this month. There is some commentary out there about how default for Bukele looks unlikely in the short term. But it does have another $800 million coming due in 2025.
There is jostling in Panama's Partido Revolucionario Democratico (PRD) for who will represent the incumbent party in 2024 elections. Among them is Crispiano Adames, president of the National Assembly. Adames’ congress is debating lawmaker Gabriel Silva’s crypto bill after current president Laurentino Cortizo sent it back to the chamber for more debate.
Venezuelan politician Rafael Lacava, the governor of Carabobo, is the man to watch this year as Venezuela enters a complex process of electioneering, geopolitical maneuvering and normalization of relations with Gustavo Petro’s Colombia. Lacava tied with Maduro in a year-end poll last year for who should be Chavismo’s presidential candidate in a theoretical 2024 election. Lacava is a supporter of crypto, NFTs and accommodates Bitcoin mining in Carabobo state.
Colombia’s Minister of Science Arturo Luna wants to restart a security-based blockchain initiative that was reportedly dropped in 2019. Luna says that blockchain can be used by Colombia’s military to fend off cyber terrorism. This appears to be an initiative that will involve the Minister of Technology and the Ministry of Defense as well.
Chile’s Fintech Law went into effect this week and puts the securities regulator CMF in charge of oversight. The law was heavily influenced by the banking sector and shines some clarity on how crypto firms - like Santiago-based Buda exchange - can operate in the sector.
Argentina in December of last year created a national blockchain committee. The committee is a policy innovation unit housed inside the Secretary of Public Innovation. It will assess blockchain technology and build recommendations for policy makers inside Alberto Fernandez’ government.
Brazil Finance Minister Fernando Haddad in December chose economist Gabriel Galipolo as his executive secretary. Galipolo helped set up meetings for Haddad across the ideological spectrum in the business sector during the campaign. He is close to Luiz Gonzaga Belluzzo and worked under José Serra, the former governor of Sao Paulo state (described as center right). Galipolo co-wrote the op-ed arguing in favor of a digital currency, SUR, alongside Haddad last year.
Barracuda Briefing is a weekly analysis of critical policy & power shaping Bitcoin and blockchain in Latin America. It goes out to subscribers for free every Friday.