Brian Armstrong, the CEO of American crypto trading firm Coinbase, has urged two Latin American countries, Argentina and Brazil, to adopt Bitcoin as a means of exchange.
Brazil and Argentina to Create a Common Currency
According to a recent report by the Financial Times, Argentina and Brazil, both in South America, are set to commence preparations to launch a common currency. The plan will be discussed at a summit to be held in Buenos Aires, Argentina, later this week.
The plan to launch the currency sets the countries in line to create the second-largest currency union after the Euro currency for the European Union. Brazil suggests calling the currency the “Sur” currency, meaning south.
The currency is expected to “first run in parallel with the Brazilian real and Argentine peso.” Other South American countries will be invited to join in bringing the currency creation plan to fruition.
The plan will take significant time to realize, possibly years. Recall that the euro came into existence 35 years after Europe declared plans to launch a currency union.
Armstrong: Bitcoin Would be the Right Long-Term Bet
Despite BTC’s volatility, Armstrong believes that Bitcoin will be the “right long-term bet” for the two countries.
Previous reports show that both countries have shown interest in Bitcoin and the crypto industry. In August 2021, Argentine President Alberto Fernández signaled interest in Bitcoin and Central Bank Digital Currency (CBDC) in an interview.
Since then, however, the country has not taken significant steps to adopt Bitcoin as a means of exchange like El Salvador and the Central African Republic.
Notably, Argentina has a history of national financial struggles. It currently faces an inflation rate approaching 100%, as the central bank printed money to cover expenses. In 2018, the country owed over $40 billion to the International Monetary Fund (IMF). A 2020 default caused Argentina to be cut off from international debt markets.
Brazil, on its part, has established itself as a hub for cryptocurrency activities. In December 2022, the country signed a bill enabling Bitcoin to become a legal means of payment for goods and services. However, the legislation will take effect 180 days from its signing date.
