I hope you are having a great Friday. Thanks again for reading Barracuda.
In case you missed it, here are the latest briefs to keep you up-to-date:
Asian fentanyl trade will pose increasing risk to Mexico-based crypto exchanges. | 22 September
El Salvador’s Bitcoin law has done more for president Nayib Bukele than it has for Salvadorans, investors | 15 September
Venezuela’s Central Bank chief Calixto Ortega wants Russian tech in the country’s banking system | 7 September
From Latin America this past week, here are the most important updates on Bitcoin, blockchain and crypto politics coursing through the news right now:
In Mexico, Ricardo Salinas Pliego is launching a delivery app called BazListo that will compete with Rappi. Salinas Pliego integrated Lightning Network payments into his retail chain Elektra. The Mexican businessman wants to allow Bitcoin and crypto trading and payments through his Banco Azteca but Mexican law currently limits traditional banks from entering the crypto space.
Mexican Senator Indira Kempis is continuing her push for legislation that would adjust the Fintech Law and accommodate Bitcoin and other crypto assets. But Morena party affiliate and Senate president Alejandro Armenta has stubbornly refused to entertain the bill, citing Banxico’s guidance as adequate enough.
El Salvador president Nayib Bukele appeared on Tucker Carlson’s FOX News show in the US shortly after Bukele’s announcement that he will run for a second and unconstitutional term in office (2024-2030). Carlson asked the mayors of Baltimore and New York for Bukele’s advice on how to crack down on crime.
An opposition to Bukele is forming around member of congress Claudia Ortiz. Ortiz will face a president who enjoys extremely high approval ratings in El Salvador.
El Salvador’s bond repurchase policy led to the repurchase of 25% of the country’s 2023 and 2025 sovereign notes. Bukele faces a $800 million payment in January of 2023 and has considered floating a volcano bond backed by Bitcoin or geothermal energy assets. The plans for issuing the bond are severely delayed.
Bitfinex wrote a detailed report praising the Bukele administration for the bond repurchase. Bitfinex has been advising Bukele on the volcano bond and the company plans to issue the volcano tokens on Bitfinex’s proprietary technology platform. There is also some interesting detail on the Bitcoin and crypto companies understood to be active in El Salvador.
Lulo Bank in Colombia is a Fintech with crypto ambitions. In Colombia, the same Abu Dhabi Royal Family bidding alongside billionaire Jaime Gilinski for shares in a Medellín-based conglomerate owns 25% of Lulo Bank.
Colombia’s securities regulator is evaluating the commentary in response to a body of norms floated before the industry. SFC head Jorge Castaño will continue managing the SFC after receiving a second appointment by president Gustavo Petro’s Finance Minister José Antonio Ocampo.
Brazilian Pix, a payment platform developed by the country’s Central Bank is exporting the technology to Colombia. Gabriell Santos, Colombia fintech head, thinks the Colombian Central Bank’s payment technology will mirror, but not replicate, Pix.
Uruguay’s Central Bank sent a proposal to congress for how to regulate crypto assets. There is a competing proposal in Uruguay’s Finance Ministry that was brought to the government by lawmaker Juan Sartori.