Latam Insights – Alliance Against Inflation, BTG Pactual Launches Stablecoin, and Argentina Debuts New Dollar – Bitcoin News

Welcome to Latam Insights, a compendium of the most relevant crypto and economic development news from Latin America over the past week. In this edition: Latin American nations struck a deal to reduce inflation, Brazil-based BTG Pactual launches its own dollar-pegged stablecoin, and Argentina launches another dollar exchange rate.

Latin American nations sign pact to fight inflation

On April 5, eleven countries in Latin America, including Argentina, Brazil, Chile, Colombia, Cuba and Venezuela, signed an agreement to fight inflation by adopting a system that will create facilities for the export and import of basic goods. The priority is to let citizens get these goods at reasonable prices.

For this, the countries agreed to “promote in the definition of commercial facilities, as well as logistical, economic and other measures, which allow the exchange of products from the basic basket and intermediate goods to take place under better conditions.”

Andres Lopez Obrador, President of Mexico, who proposed this agreement in March,, tired:

We can make exchanges economically, commercially, if we agree and remove obstacles, tariffs, sanitary measures, and every country has something to offer. All with the aim that food and basic products can come at a better price.

BTG Pactual Launches Dollar-Pegged Stablecoin

On April 4, BTG Pactual, a Brazilian investment bank that reported over $100 billion in assets under management in Q4 2022, launched BTG Dol, a dollar-pegged stablecoin. Touted as the first stablecoin asset launched by a bank, it seeks to bridge the traditional financial and digital financial worlds in Brazil, allowing users to create it by paying just 0.5% for the conversion.

André Portilho, Head of Digital Assets at BTG Pactual, stated that the development of this new stablecoin will provide customers with an “easier, safer and smarter way to invest in dollars”. The dollar-pegged stablecoin and the funds supporting it will be managed by BTG Pactual.

Argentine government debuts new dollar exchange rate

The Argentine government will offer a new exchange rate to agricultural producers so that they can liquidate their products at a higher rate (300 pesos per US dollar) than was previously offered. The goal of the initiative is to collect more than nine billion dollars to strengthen the country’s reserves.

The government must accumulate at least $8 billion by December to comply with agreements made with the International Monetary Fund (IMF). The government has a negative balance sheet, having invested $3.4 billion this year in stabilizing the value of the Argentine peso, and faces high levels of inflation and devaluation.

What do you think about developments in Latin America this week? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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