El Salvador’s Proposal for Crypto-Based Trade Settlements

El Salvador, a nation that has gained international attention for its embrace of Bitcoin, is now proposing a novel use for cryptocurrency: facilitating international trade settlements with Russia. According to Alexander Ilyukhin, the First Secretary of the Russian Embassy in Nicaragua, El Salvador’s government is exploring cryptocurrency as an alternative to traditional financial systems, particularly in its dealings with Russia.

El Salvador, which operates with the US dollar as its official currency, faces challenges when dealing with international trade under traditional financial systems. The country’s proposal to use cryptocurrency could streamline transactions and reduce reliance on conventional banking channels.

The context of this proposal is particularly noteworthy given the geopolitical tensions involving Russia and Ukraine. Ukrainian President Volodymyr Zelensky has been seeking international support against Russian aggression, and El Salvador’s move reflects its stance of neutrality while seeking to enhance trade relations with Russia.

Ilyukhin noted, “We have difficulties with calculations because the official currency in El Salvador is the US dollar. As an alternative, El Salvador offers to use cryptocurrency in trade operations.”

This development underscores El Salvador’s ongoing commitment to integrating cryptocurrency into various aspects of its economy, potentially setting a precedent for how digital currencies can be used in international trade.

Argentina Registers First Bitcoin-Funded Company

In a landmark event for Argentina, the country has registered its first company funded with cryptocurrency. This milestone marks a significant step in Argentina’s efforts to modernize its legal and regulatory framework to accommodate new technologies and digital assets.

The company was established with a capital of nearly $500, divided into approximately 0.0046 BTC (valued at $302.5 at the time of registration) and $194.99 in USDC (a stable coin). This registration follows the recent implementation of a new regulation allowing businesses to be funded and registered using cryptocurrency and other digital assets.

According to Criptonoticias, the registration process for this company was notably different from traditional methods. The cryptocurrency used for the registration had to be transferred to custodial wallets managed by nationally recognized exchanges such as Lemon and Ripio. This requirement ensures that the digital assets involved in the company registration are securely held and managed in compliance with local regulations.

This development represents a significant step forward for Argentina, a country that has seen growing interest in cryptocurrency and blockchain technologies. The registration of a Bitcoin-funded company reflects a broader trend of integrating digital currencies into formal economic activities and may encourage further innovation and adoption in the region.

Polymarket’s $3.8 Million Bet on Venezuelan Election Remains Unresolved

In other news, Polymarket, a cryptocurrency-based prediction markets platform, is grappling with a significant unresolved bet related to the Venezuelan presidential election. The platform has been unable to finalize a $3.8 million bet on the election outcome due to ongoing disputes about the election results.

The Venezuelan Electoral National Council (CNE) declared President Nicolas Maduro the winner of the election. However, the opposition has contested the results, citing a lack of transparency and an incomplete breakdown of the election data. This situation has led to uncertainty and disagreements regarding the legitimacy of the election results.

As a result, multiple resolution proposals for the Polymarket bet have been put forward but remain contested. The unresolved bet has left over $3.8 million in limbo, highlighting the challenges associated with using prediction markets to settle political events in environments with significant uncertainty and dispute.

Conclusion

This week’s Latin America crypto news reveals significant shifts in how cryptocurrencies are being utilized in the region. El Salvador’s proposal to use crypto for international trade with Russia and Argentina’s registration of a Bitcoin-funded company mark notable advancements in the integration of digital assets into economic activities.

At the same time, the unresolved Polymarket bet on the Venezuelan election underscores the complexities and challenges faced by cryptocurrency-based prediction markets in politically charged contexts. As Latin America continues to navigate its evolving relationship with cryptocurrencies, these developments highlight both the opportunities and hurdles of integrating digital assets into broader economic and political frameworks.