At the regional level, it is interesting to analyze the impact that cryptocurrencies have had in the Mercosur member countries. In Argentina, as we noted, greater interest and adoption of cryptocurrencies has been perceived. The country has experienced high inflation and economic restrictions, which has led to increasing use of cryptocurrencies as a financial alternative.
Although cryptocurrencies are not officially recognized as legal tender, the Argentine government has implemented regulations for their use, such as including taxes on cryptocurrency profits and creating a mandatory registry for cryptoasset service providers. In Brazil, the greatest acceptance and adoption of cryptocurrencies in the region is noted. Although cryptocurrencies do not have a specific legal or regulatory status, the Brazilian government has issued statements that recognize the legality of their use as a means of payment and as an investment.
However, there are regulatory proposals under discussion to address issues such as the prevention of money laundering and the protection of users. Paraguay has been attractive to the cryptocurrency mining industry due to its abundant hydroelectric energy and low electricity costs. However, there is no specific regulation on cryptocurrencies in the country.
The Central Bank of Paraguay has issued warnings about the risks associated with cryptocurrencies and has clarified that it does not consider them legal tender. Finally, Uruguay has adopted a more open approach to cryptocurrencies.
The country has promoted technological innovation and has positioned itself as a favorable center for companies related to blockchain and cryptocurrencies. The Mercosur bloc has a pending agenda to define as an economic agreement, a future legal and economic regulation of cryptocurrencies as a form of payment/collection of operations between member countries. (⁴)
(¹) Bitcoin Criptomonedas. (2016, junio 7). Is bitcoin legal money or not? It’s time to legislate.?
(²) Basurto, A. (2015) Bitcoin: Security aspects of Bitcoin and its application in an alternative public key infrastructure.
(³) https://revistas.javeriana.edu.co/files-articulos/CC/23%20(2022)/383671212006/index.html
(⁴) https://lexlatin.com/reportajes/moneda-unica-mercosur
MG. Daniel Oscar Iglesias. Institutional Relations Area – Secretariat of University Extension – Argentine Business School University. Degree Director. in International Business Administration and coordinator of the Specialization in International Business.
