Latam Insights: Gold-to-Bitcoin Exchange in El Salvador, Argentina Opens Foreign Crypto ETFs
Welcome to Latam Insights, a collection of the most relevant crypto and business news from Latin America from the past week.In this episode: El Salvador could have a strong gold-to-Bitcoin trade, Argentina opens the door to foreign cryptocurrency ETFs, and Brazil could lift its ban on self-custody stablecoins.
Salvador discovers $3 trillion worth of gold – will it all flow into Bitcoin?
El Salvador's President Nayib Bukele has highlighted the potential of the country's undiscovered gold reserves, estimating their value at $3 trillion if fully explored.
The president cited studies suggesting that only 4% of the country's mining sites have been explored and about 50 million ounces of gold worth $131 billion have been unearthed - about 380% of El Salvador's GDP. He estimates that a comprehensive study could increase the value of the reserves to more than $3 trillion, or 8,800% of GDP.
Max Kaiser, a prominent Bitcoin proponent, suggested monetizing gold reserves for Bitcoin investment, which was in line with Bukele's vision. He suggested selling preferred shares to finance massive Bitcoin purchases, arguing that the cryptocurrency's growing dominance over gold makes it a more valuable long-term asset. Going forward."
Argentina opens investment opportunities in foreign cryptocurrency ETFs
Argentina is opening its doors to more investment opportunities every day thanks to President Miley's libertarian policies.CNV, Argentina's securities regulator, has announced a market-level move to allow the entry of foreign investment proposals related to several cryptocurrency ETF opportunities, including Ethereum and Bitcoin, gold and even a Chinese stock index.
These investments will be available on the stock markets under the guise of CEDEARs.These are Argentine certificates of deposit issued by commercial or investment banks that have an agreement with the foreign companies that issue these instruments.Investors effectively use these institutions as bridges because they are legally required to be hedged 1:1 with the underlying assets.
