Latam Insights — Steve Hanke Advocates Dollarization in Argentina, Bitcoin City Plans Unclear in El Salvador, Sunacrip Implicated in Venezuela Layoffs
Economist and professor Steve Hanke has proposed dollarizing the Argentine economy as a solution to the country's financial crisis. Hanke argues that the depreciation of the Argentinian peso against the USD necessitates adopting the US dollar. This aligns with the campaign plans of presidential candidate Javier Milei, who also supports abandoning the peso and adopting the US dollar to combat inflation and devaluation. Hanke additionally criticized Argentina's debt with the International Monetary Fund (IMF).
In El Salvador, formal plans for Bitcoin City, a cryptocurrency-focused city funded by "Volcano bonds," have not yet been submitted to public institutions. The Public Works Ministry has no project under the name Bitcoin City, despite President Nayib Bukele's announcement of the initiative in November 2021. However, the organization "Escape to El Salvador" clarified that the plans were still in progress but had not yet been introduced to the ministry.
Meanwhile, Sunacrip, the Venezuelan cryptocurrency watchdog, has reportedly laid off over 400 workers due to a corruption probe. The former head of Sunacrip, Joselit Ramirez, is under arrest for his alleged involvement in the PDVSA-crypto corruption scheme. Venezuelan President Nicolas Maduro intervened in the institution and established a commission to review its actions, but it remains unclear whether the organization will be terminated or undergo restructuring....