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Four Stories From Argentina, Where Bitcoin And Crypto Rule The Land

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7 hours ago

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In current-day Argentina inflation is no joke and prices change every day. That means it’s fertile ground for bitcoin and crypto adoption. “The central bank has warned repeatedly about the risk of investing in volatile digital currencies, and some adopters are taking it carefully,” says Reuters. Once in a blue moon, mainstream media reports on bitcoin and crypto in a relatively positive light, and Argentina inspired one of those rare articles. 

According to Reuters, “crypto penetration in Argentina was 12%, around double the level of Mexico and Brazil.” The cause might be that the peso “has depreciated 14% this year against the dollar” and that “annual inflation rose to 58% in April and could go as high as 70% this year.” Not only that, Argentina is under “capital controls limiting foreign exchange to $200 monthly.” So, there’s a huge incentive to seek refuge in bitcoin and stablecoins. 

From Argentina: The Cafe Owner

In the Buenos Aires port of Puerto Madero, the Crypstation cafe recently opened. Screens show “real-time cryptocurrency price quotes” and they accept bitcoin and crypto. Reuters quotes one of  Crypstation’s founders, Mauro Liberman:

“The local environment is pushing people to protect their capital in cryptocurrencies and so we see growth speeding up. Throughout Latin America the growth potential is enormous. It is an avalanche that won’t be stopped.”

From Argentina: The IT Specialist

Another interviewee is Victor Levrero, “an IT specialist in Buenos Aires province” who “puts his extra savings into stablecoin and bitcoin each month after using up his $200 quota to convert pesos to dollars.” He told Reuters that he doesn’t even bother with banks anymore:

“Basically, it’s because I lose less. With Argentine inflation of between 60-70%, and fixed terms paying 30-35%, it just doesn’t work.”

BTCUSD price chart for 09/20/2022 - TradingView

BTC price chart for 09/20/2022 on Bitstamp | Source: BTC/USD on TradingView.com

From Argentina: The Self-employed Computer Technician

Even though he’s in computers, Marcelo Vila only has “a small amount invested in bitcoin and Ether.” He’s proceeding with caution, as all newcomers should:

“The idea is to expand the proportion of funds invested in crypto. But until I get to know the crypto market, I can’t put a lot of money into it.”

From Argentina: The Home Miner

The fourth subject is Sebastian Carsorio, who comes from a poor neighborhood and “is looking to dig himself out of poverty using a home-made cryptocurrency mine he assembled with recycled computer parts from his work.” Impressive.

“I repaired the things and put it together in a computer,” he told Reuters at his home, where he had screens showing how the mining is going. He started with Ethereum and then bitcoin – which allowed him to buy some land and go back to school.

“I’ll keep mining because it’s a good way of saving,” Carsorio said, explaining that he gets a better exchange rate for pesos than he would on the street. “When money has been tight, mining has saved me many times.”

How many Argentinians could say something similar? Bitcoin and crypto are taking hold in the country because people need them. The deal the government signed with the FMI that specifically demanded for them to discourage the bitcoin industry in Argentina can only do so much. People need a refuge from inflation and cryptocurrencies provide it, it’s as simple as that.

In recent news that reflect crypto adoption, Bitfarms recently started the engine on their brand new bitcoin farm in Argentina. For their part, the government of the wine-producing region of Mendoza announced that they will accept tax payments in cryptocurrencies.

Featured Image by Pexels from Pixabay | Charts by TradingView

Post-Merge, Ethereum mining rig



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Regulation

US Lawmakers Investigate Debanking Of Crypto Companies

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3 hours ago

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January 25, 2025

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The US government under Joe Biden has allegedly been stifling the crypto industry through the process of debanking, which experts labeled “Operation Chokepoint 2.0.” With Donald Trump’s re-election, the crypto industry expects a reform that will lead to the US banking industry embracing cryptocurrencies. US lawmakers have set sight on the government’s regulatory overreach, sparking investor enthusiasm.

In a recent development, the US Committee on Oversight and Government Reform has initiated investigations on the alleged debanking of crypto companies and individuals. While debanking refers to the isolation of crypto firms from the banking sector, the US lawmakers’ move intends to put an end to the authority’s indirect control over the crypto space.

US Oversight Committee Probes into Operation Chokepoint 2.0

According to a Forbes report, the US Oversight Committee has launched investigations on the “improper debanking” of individuals and organizations related to crypto. Under the leadership of Chair James Comer (R-Ky.), the Committee aims to collect testimonies from affected individuals and companies.

On Friday, the US Oversight Committee sent a letter to industry leaders, revealing their investigation plans. By examining the groups claiming to be debanked, the committee seeks to determine whether the trend is driven by their independent decisions or by government overreach.

Industry Leaders Allege Government’s Indirect Control Over Crypto

The term “Operation Chokepoint” could be traced back to former President Barack Obama’s reign when financial services were restricted for high-risk industries. Reflecting on the term, Andreessen Horowitz co-founder Marc Andreessen called the process of debanking during the Biden era “Operation Chokepoint 2.0.”

Industry experts like Coinbase CEO Brian Armstrong and CLO Paul Grewal corroborated Andreessen’s comments. Grewal posited, “Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry.”

Chokepoint 2.0: SEC’s Aggressive Regulation Sparks Backlash

Notably, Uniswap Labs Founder Hayden Adams complained that his bank accounts were closed without prior notice. He added, “I know many individuals and companies who have been similarly targeted simply for working in the crypto industry.”

Similarly, Brian Armstrong revealed that banks closed ties with more than 30 tech companies. He added that the US SEC and former Chair Gary Gensler attempted to “unlawfully kill our [their] entire industry.” He also addressed it as the Biden government’s “most unethical and un-American” action.

Meanwhile, Ripple’s CTO, David Schwartz, described Operation Chokepoint 2.0 as the government’s “indirect” regulation of the crypto industry.

Investigation on Debanking: What To Expect?

Reportedly, more than 120 crypto hedge funds were debanked over the past three years. While real estate and private credit investors enjoyed banking services, crypto hedge funds were denied the same facilities. As cited by the committee, First Lady Melania Trump shared her personal experience of being debanked, which she attributes to political bias.

With an active investigation, the Oversight Committee intends to protect crypto users and traders from unfair government control. The agency envisions ensuring an unbiased crypto trading atmosphere in the United States and thereby terminating Operation Chokepoint 2.0. The unredacted FDIC files that Coinbase secured will undoubtedly be useful in this investigation.

US Banks Remain Ready To Embrace Crypto

Recently, Circle CEO Jeremy Allaire expressed optimism about the future of crypto, anticipating that banks will soon facilitate cryptocurrency trading. He believes that Trump’s new crypto policies will cease Operation Chokepoint 2.0, collaborating with the banking industry.

At the same time, Bank of America’s CEO Brian Moynihan expressed the US banking industry’s willingness to accept cryptocurrencies. Wall Street giants are also eying the crypto market. They seek to make a strategic entry into the space to tap into its immense opportunities.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

News From El Salvador, Late August: Preparing for Bitcoin Day’s 1st Anniversary

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4 hours ago

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January 24, 2025

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It’s hard to believe Bitcoin Day was only a year ago. Let’s go back to El Salvador in anticipation of that faithful day’s celebrations, you’ll find that the country is booming with activity. This compilation of news has it all; from tourism to mining, from conferences to meetups. For a while there, the war with the gangs monopolized El Salvador-related headlines, but with Bitcoin Day’s anniversary on the horizon, it’s time to go back to basics.

High-Level People Prepare For Bitcoin Day’s Celebrations

  • First of all, tourism in El Salvador is back at pre-pandemic levels and then some. President Bukele clarifies that the charts refer to “international tourism,” so the main drivers are “Bitcoin and surf.” Not only that, “internal tourism is growing even more, mainly because of our crackdown on gangs.”
  • Since the original Bitcoin Day, mining in El Salvador has done nothing but grow. In the following video, Anchor mining shows the immersion coolers they brought to El Salvador. Plus, in the tweet, the company’s founder makes a promise.“Soon to launch the educational project where my team will be explaining how immersion cooling is the future of the hashrate decentralization.”
  • This could be huge or nothing at all. Investment platform BankToTheFuture and President Bukele are working on “a number of recovery plans in El Salvador for global distressed Bitcoin lending companies.” Is it possible that the bitcoin lending companies’ future is in the only country with favorable legislation? Or are bitcoin lending companies done for good?

BTCUSD price chart for 08/29/2022 - TradingView

BTC price chart for 08/29/2022 on Bitstamp | Source: BTC/USD on TradingView.com

Meeting Bitcoin-People Is Easy

  • Roman Martinez and Mike Peterson from Bitcoin Beach gave a presentation at the Surfin Bitcoin conference in Biarritz, France. The project that started it all’s legend keeps spreading far and wide. The tweet says, “Probably the most touching conference.The emotion is palpable in Bitcoin Beach. They are proud of their country, proud to be pioneers.”
  • And speaking about Roman and the Bitcoin Beach team, they know how important the upcoming anniversary is. “Join us for the one year anniversary of Bitcoin Day in El Salvador! Our Bitcoin Beach meet-up will turn into a celebration party you can’t miss!”
  • Plus, the Bitcoin Beach team recently received a delegation from the Parlamento Centroamericano AKA Parlacen. “They heard the story of Hope House and how our Bitcoin Beach project used Bitcoin as a tool for financial inclusion and empowerment of the community,” Roman informed.
  • The people from the My First Bitcoin education initiative also run a monthly bitcoin meetup. The only difference is that they do it in San Salvador, the capital. “All of our friends in El Salvador will join us tomorrow for our Bitcoin monthly meetup,” the announcement tweet manifests.

Last But Nor least, Nashin Bupele

  • Since the original Bitcoin Day, El Salvador is everywhere. To prove that, this is a scene from a Korean soap opera in which someone gives a presentation on El Salvador and its bitcoin adoption.

The table is set for Bitcoin Day’s first anniversary. The world was a whole different beast when El Salvador adopted bitcoin as legal tender. That reminds us of Max Keiser’s classic question, is bitcoin a reaction to the chaos or is bitcoin creating the chaos? In El Salvador’s case, the answer is obvious. Bitcoin is taking the country to the next level. 

Featured Image: Nashim Bupele screenshot from this video | Charts by TradingView

DeLorme, El Salvador flagEl Salvador prepares for Bitcoin Day’s first anniversary.





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Regulation

US House oversight committee is probing crypto debanking

Published

5 hours ago

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January 24, 2025

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Judge orders the US SEC to pay $1.8M in Debt Box case dismissal
  • The US House Oversight Committee has announced its investigating cases of debanking of crypto companies.
  • Uniswap, Coinbase, Kraken, a16z and Blockchain Association are among crypto companies and entities to receive a letter asking for information on the alleged debanking.
  • The Senate Banking Committee is also set to hold a hearing on debanking in early February.

The U.S. House Oversight Committee is probing the issue of alleged debanking of crypto companies and individuals.

On Jan. 24, the committee sent a letter addressed to several crypto executives asking them to share information on the debanking claims. Apart from crypto companies, US First Lady Melania Trump also highlighted the issue.

Investigations are part of the new focus on crypto regulation following a largely negative four years under President Joe Biden’s government.

Those to receive the letter are Uniswap Labs CEO Hayden Adams, Coinbase co-founder and CEO Brian Armstrong, a16z co-founder Marc Andreessen and Kraken CEO David Ripley. The letter also sought the input of Lightspark CEO David Marcus and Blockchain Association CEO Kristin Smith.

“The Committee seeks to understand whether this pattern of debanking stems from financial institutions themselves or from government actors,” the letter reads in part.

Senate Banking Committee to hold a hearing

Crypto debanking has also attracted the attention of the House Financial Services Committee and the Senate Banking Committee, both of which are looking to get to the bottom of this heavily criticised developments.

“The Committee is concerned about the chilling implications this overreach may have in silencing industries arbitrarily disfavored by regulators, driving consequential technological and financial innovation overseas, and preventing targeted businesses from making payroll and paying employees their wages,” the Oversight Committee’ letter continues.

The Senate Banking Committee has announced it will hold a hearing on crypto debanking on February 5, 2025. Committee chair Tim Scott said:

“Debanking is un-American – every legal business deserves to be treated the same regardless of their political beliefs. Unfortunately, under Operation Chokepoint 2.0, Biden regulators abused their power and forced financial institutions to cut off services to digital asset firms, political figures, and conservative-aligned businesses and individuals.”

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