Latam Insights Steve Hanke Advocates Dollarization in Argentina, Bitcoin City Plans Unclear in El Salvador, Sunacrip Involved in Venezuela Layoffs

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Welcome to Latam Insights, a collection of the most relevant news on crypto and economic development from Latin America over the past week. In this issue, economist Steve Hanke calls for Argentina to be dollarized, Bitcoin City plans are still not formalized in El Salvador, and Venezuelan crypto watchdog Sunacrip is reportedly embroiled in mass layoffs.

Steve Hanke proposes to dollarize Argentina

Steve Hanke, an economist and professor of applied economics at Johns Hopkins University, favored the proposal to dollarize Argentina’s economy in order to put some order in the country’s financial crisis.

In a tweet posted on April 25, Hanke said:

By my measure, the Argentine peso has depreciated 52% against the US dollar since January 1, 2022. Argentina needs to get rid of the peso and dollarize now.

Hanke’s proposal coincides with what Javier Milei, one of the strongest presidential candidates according to the polls, presents in his campaign plans, considering abandoning the Argentine peso and adopting the US dollar as a solution to the crisis. escalating inflation and devaluation the country is facing. Hanke also criticized the country’s debt to the International Monetary Fund (IMF).

Bitcoin City plans still not registered in El Salvador

Official plans for Bitcoin City, the cryptocurrency-focused city that would be built in El Salvador in part with funds from the as-yet-unreleased “volcanic bonds,” have yet to reach public institutions in El Salvador. A document posted on social media on April 26 shows that the Ministry of Public Works has no project bearing the name of Bitcoin City, an initiative that was presented by Salvadoran President Nayib Bukele in November 2021.

However, the “Escape to El Salvador” team, an organization that promotes settlement in the country, clarified that these plans had still not been presented to the Ministry of Public Works, but that the project was still in progress.

Venezuelan cryptocurrency watchdog lays off hundreds of workers

Sunacrip, the Venezuelan cryptocurrency watchdog, laid off more than 400 workers this week, according to local sources. The Crypto Superintendency had a payroll of 600 workers, who are affected by the current investigation into cryptocurrency-related corruption. Former Sunacrip chief Joselit Ramirez is currently under arrest for his alleged involvement in the so-called PDVSA-crypto bribery scheme.

The institution was the subject of an intervention by Venezuelan President Nicolas Maduro on March 17, who appointed a commission to examine the actions of the institution, but there has been no report on whether the organization will be dissolved or whether it will continue with another organizational structure.

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

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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