Brazil Explores AI Regulation, and More

BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.

This week’s roundup includes stories on Brazil’s efforts to regulate AI, a surge in interest in the Argentine Football Association fan token as the Copa América final approaches, and more.

BBVA: 9 out of 10 Argentines Use Digital Wallets

BBVA Bank recently reported that nine out of every ten Argentines under 40 now use digital wallets. This is a huge increase from 2020 when only 4% paid using QR codes. According to Argentina’s National Institute of Statistics and Census (Indec), 89% of Argentines use smartphones and 88% have internet access, helping modernize financial services.

“The outlook is for growth: the greater adoption of digital wallets among young people allows us to think that their use will be increasingly widespread,” said Joaquín Molina from the consulting firm Taquion.

Popular digital wallets in Argentina that are not crypto-based include Mercado Pago, Ualá, Brubank, MODO, Cuenta DNI, and Tarjeta Naranja. MODO is the only one that integrates services from several banks like BBVA, Santander, Macro, Galicia, Nación, ICBC, and Ciudad.

Read more: 16 Best Web3 Wallets In 2024

Data from Taquion also shows that 55% of Argentines use digital wallets for shopping at local stores, 38% for supermarket purchases, and 30% for buying shoes. Additionally, four out of ten users prefer this payment method for the rewards offered.

In March, Argentina drafted a law to regulate cryptocurrency exchanges and wallets, working closely with the private sector. This move follows the guidelines of the Financial Action Task Force (FATF).

The new set of rules requires Argentine lawyers, banks, and finance companies to report any client operations that seem illegal. This is part of President Javier Milei’s effort to regulate wallet use.

Venezuelan Authorities Warn of Alleged Cryptocurrency Ponzi Using PDVSA Name

In May and June, Venezuela faced controversies over alleged cryptocurrency Ponzi schemes. As July progresses, the issue persists with a new scheme reportedly using the name of Petroleos de Venezuela (PDVSA). The initial alert came from X (former Twitter) user RoamingVzla, known for exposing dubious operations of companies like BTR, HyperAI, and Solesbot.

“Since some major Ponzi schemes collapsed, new ones keep emerging weekly. Some last longer than others. The latest one, supposedly launched on July 2, is called PDVSA_Mall,” tweeted RoamingVzla.

The platform solicits investments in TRON (TRX) or USDT, promising benefits “valid for 40 days.” It also claims that forming a large team can significantly increase earnings.

“Whenever you top up through the registration link, you will receive additional USDT rewards. For instance, depositing 1000 USDT through the link grants an additional 160 USDT rebate,” stated the PDVSA-VIP team.

Read more: 15 Most Common Crypto Scams To Look Out For

The cryptocurrency ecosystem in Venezuela has seen multiple scams, causing significant losses. Previous schemes like Solesbot, HyperAI, and BTR have left Venezuelan investors wary.

The use of PDVSA’s name raises serious concerns, especially without official endorsement. The platform claims to operate under the Central Bank of Venezuela (BCV) and the Bank of Venezuela (BDV) regulations.

The PDVSA crypto scandal, marked by massive corruption within Petroleos de Venezuela, serves as a stark fraud warning. Former Petroleum Minister Tareck El Aissami was arrested for allegedly siphoning billions from oil sales through cryptocurrencies and Venezuela’s National Superintendence of Cryptoassets (SUNACRIP). Estimates suggest up to $23 billion was embezzled, severely impacting Venezuela’s economy.

Brazilian Senate Postpones Vote on AI Regulation Bill

The Brazilian Senate has delayed voting on Bill 2338/23, which aims to regulate artificial intelligence (AI) tools. The bill will undergo further debate, with a vote expected only after the municipal elections. Opposition senator Marcos Rogério proposed the postponement, citing concerns about the bill’s potential impact on the tech sector.

“The bill aims to regulate AI to prevent misuse in elections and establish privacy rules. However, it imposes excessive restrictions on a nascent sector,” he stated.

Rogério warned that the bill’s bureaucracy could hinder technological development, requiring rigorous documentation and state analysis for all systems. Alan Nicolas, founder of the Lendár.IA Community and an AI expert, echoed these concerns. He said the need for legislation to protect against AI misuse but cautioned against stifling innovation.

Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies

The push for AI regulation stems from its disruptive potential, especially in elections, where false information can spread rapidly. The Superior Electoral Court (TSE) has mandated AI-created content identification and banned deepfakes for the 2024 elections.

This concern extends beyond Brazil. Tech giants like Google and OpenAI have restricted their AI tools from discussing elections. OpenAI’s terms of service prohibit tools like ChatGPT from creating political content. With elections in Brazil and the US in 2024, it remains to be seen how AI will influence the outcomes, marking the first time elections will occur after AI tools have become widespread.

Copa América Final: Argentina Fan Token Surges

Argentina, the reigning world champions, will play Colombia in the Copa América final on July 14. Argentina is favored to win their 15th continental title.

Soccer fans have enjoyed this major event for a month, but cryptocurrencies have also taken the spotlight. Amid this excitement, the Argentine Football Association Fan Token (ARG) is surging, now trading at $2.09.

Read more: What is Sorare? Where Blockchain Meets Fantasy Football

The rise in fan token prices correlates with the teams’ performances in the tournaments. However, other factors, like the overall volatility of the cryptocurrency market, also play a role. It’s important to note that fan tokens are a new and uncertain asset, involving several investment risks.

After the celebrity meme coin frenzy, hackers have shifted their focus to sports stars, using their accounts to push dubious projects. The latest victims are Lionel Messi and Ronaldinho Gaúcho.

Messi’s Instagram account was hacked on Monday, leading to a 193% surge in the WATER meme coin value​. Hackers posted a story featuring an image of Messi with a link to promote WATER.

A similar incident occurred on Tuesday with Ronaldinho Gaúcho’s account. The post remained visible on his profile, with no explanation provided.

Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide

The meme coin promotion reached a significant portion of the combined 577 million followers of the two soccer legends. This exposure created a spike in interest in WATER.

WATER was launched on June 24, 2024 on Solana, valued at approximately $0.00264353. It experienced a sharp decline, hitting a low of $0.00028329 by Monday morning.

The hack on Messi’s account caused WATER’s value to rise exponentially, reaching $0.00123181. However, the price fell again. Another slight surge occurred on Tuesday morning following the post on Ronaldinho’s account, but it failed to sustain the meme coin’s value, which has continued to decline.

As the Latam crypto scene grows, these stories highlight the region’s increasing influence in the global market. Stay tuned for more updates and insights in next week’s roundup.