On Twitter, President Nayib Bukele acknowledged many technical errors at the beginning of the Bitcoin wallet. Several new businesses accept it, including Wendy’s franchise and the Cuscatlán bank.

More than half a million people in El Salvador are now using the government wallet Chivo after the full adoption of Bitcoin as legal tender on September 7. The president of that nation, Nayib Bukele, also revealed some new businesses that accept BTC in the Central American country.

In a big Twitter thread, Bukele explained in more detail everything concerning the Chivo wallet. The leader had first acknowledged that there were errors at the beginning.

He highlighted that there were more than 500,000 active users (it is worth noting that the population of El Salvador is 6.5 million people, with a percentage of around 70% of legal age).

The president also clarified that the 200 ATMs work perfectly. The 50 ATMs in the United States of America work perfectly too. The president even said that 51 Chivo points are operating at 100%.

In the United States of America

As The President tweeted, in the United States of America, there are Chivo ATMs (which can serve to recharge without paying commissions) where local legislation allows it.

The leader also said that the credit or debit card recharge option would be available in the next few days.

The president of El Salvador said users could recharge their Chivo wallet with any credit, debit, or gift card, in the place of the world they want and without paying commissions. He added that new registrations are not enabled, nor is the app download for new phone models.

More Shops joining the Crusade

Also, Bukele revealed a list of new businesses that accept payments in Bitcoin or dollars, using both Chivo and other apps. Some shops that had made this move are Super Selects, Don Pollo, Wendy’s, Cuscatlán, and Bank San Nicolás Pharmacies.

The president added that they are currently working with more merchants to bring more benefits, such as discounts or promotions on products to users of Billy Goat.

The leader also took advantage of the thread to mention that some profiles got blocked because they had a registration error when the app still had problems. These users will get deleted so that they can complete the procedure again.

Likewise, the president indicated that the minimum number of transactions with the wallet changed. The minimum of USD 5 in bitcoin for transactions to other wallets changed, and now, the new low is $ 0.01.

Bukele concluded by saying that they had set themselves to launch the project in 3 months and mistakes appeared. His team is already fixing them, so many Salvadorans can now use their Chivo wallet without obstacles.

By: Jenson Nuñez

Evergrande’s debts surpassed $ 300 billion, and its value on the stock market had fallen.Banks and financial institutions around the world could experience vital losses due to a possible default.

International media reported that the real estate and construction company Evergrande Group, one of the two big companies in China, could go into default in the coming days.

There is uncertainty among analysts on the measures the State would take regarding a possible bailout. This bailout would cause consequences for the national and global economy.

According to Reuters news agency reports, the most relevant banks in China got notified that Evergrande would not meet the commitments of loan payments on September 20, 2021.

The Asian company would be facing a liquidity crisis that could leave an impact only comparable to that of other major global outbreaks, such as the one in 2008.

 Reuters also reported that Evergrande is negotiating with financial institutions an extension of the term. It would also renew the loans; the problem is that other creditors and investors also claim their payments from the company. The same happens with suppliers. There is fear in the air.

The Impact the Evergrande Could have on China

Although Reuters has not confirmed that a default would happen, one of the theories that experts point out regarding the complications is that the Chinese government offers a financial rescue.

In this sense, regulators warn about the consequences that non-compliance with the firm’s obligations, which add up to USD 305,000 million, could have for the country’s financial infrastructure.

On the other hand, the analyst Cochran highlights that the massive sale of properties by the real estate to solve its debts will cause its shares to crumble down even more, as they have been doing recently.

This collapse of the Chinese company could run in parallel to Lehman Brothers’ failure in 2008. At that time, the total amount of assets that got dissolved was $ 600 billion; Evergrande owns $ 200,000 in shares and another $ 300 billion in debt. This sum adds up to $ 500 billion in total.

There have been no official announcements from the company or the Chinese government. On the other hand, financial rating agency S&P downgraded Evergrande to CCC, indicating that it is a “high risk” company. The reasons rely on its reduced liquidity and the risks of default.

The Role of Bitcoin during an Alleged Crisis in China

This possible default could occur, and the Chinese government would decide the rescue of Evergrande to avoid a financial crisis. One of the immediate procedures would be the printing of more fiat money. In this way, an injection of liquidity would help the institutions and the population in general.

However, this situation would also lead to higher inflation. Even the US dollar has lost its purchasing power, and it is here that the first cryptocurrency emerges as an option that has appreciated in recent years.

By: Jenson Nuñez

A City of Miami commission has received a considerable contribution of about $ 4 million. This contribution came to effect to build the MiamiCoin treasury in the city of Miami.

Miami Mayor Francis Suárez, together with a team from Miami, voted in favor of receiving a considerable contribution of about $ 4.3 million from the CityCoins project.  The amount got collected because of the creation of MiamiCoin (MIA).

MiamiCoin is a token that works inside Stacks, a Bitcoin side chain. This project got released independently of the Miami city government.

The agreement got revealed on the CityCoins portal on September 13.  It becomes official that the Miami city commission has voted to claim their collaborations from the MiamiCoin protocol.

The resources will help in different projects to bring more benefits to the city, including the program to reduce the effects of climate change and the cryptographic education and incentives for technology entrepreneurs’ plans.

From now on, the city of Miami will have the opportunity to manage the MIA treasury, offering incentives to its citizens who own or mine MIA.

According to the MiamiCoin document released on the CityCoins website, MIA mining will bring t least 30% of the total mined to MIA’s treasury and the remaining (70%) in additional benefits to miners.

MIA is a token launched last August and created within the Stacks network, a Bitcoin side chain in which it is possible to execute smart contracts and create decentralized platforms. Mining in Stacks, and mining in MIA, will grant benefits in STX, the network’s cryptocurrency, and BTC.

According to the announcement, MiamiCoin will become an expansionary tool. It does not only offer adoption benefits; it will also allow the city to build new decentralized platforms that run directly on top of Stacks.

A Cryptocurrency for Miami not Created by Miami

CityCoins is a project that plans to bring cryptocurrencies to various cities in the United States of America, with Miami as a starting point. The process begins with a demand by citizens to beg for a cryptocurrency for their city through an open choice.

Once the currency meets its release, a vote gets opened in which citizens and government authorities can opt to adopt and claim the contributions and administration of the created currency.

Regarding Miami, the commission in charge came to sign the agreement with CityCoins to achieve the adoption of MIA. Mayor Francis Suárez gave the needed approval to the proposal.

This approval took effect considering that previously, the representative has established a position in favor of Bitcoin.

President Joe Biden’s US $ 1.9 billion bailout plan turned into an active law on March 12, meaning Mayor Suarez bought bitcoin at a price of around $ 57,000.

In the case of ether, the currency seems to be coping with the situation much better. On March 12, ether was circling 1,800 USD. Ether Reached a sum of USD 3,800, which would have generated more than 100% growth.

Mayor Suárez has recognized the scope of cryptocurrencies and has been a faithful enthusiast and promoter of bitcoin for several months.

As he established in the interview, the governments worldwide will face the same difficulties to regulate Bitcoin that they have had to regulate Uber, because they are too big.

By: Jenson Nuñez

The partnership between Movii and Bitpoint has completed operations with cryptocurrencies for USD 320 million. Eight of the nine companies in the pilot plan are awaiting approval to begin their tests.

In September 2020, the Government of Colombia announced that transactions with cryptocurrencies between Bitcoin (BTC) exchanges and local banks would be possible. One year later, financial institutions and cryptocurrency platforms can sustain partnerships and operate without conflicts, unlike in the past.

The regulatory sandbox for the financial technology (FinTech) sector started, integrating a pilot study with cryptocurrencies. The objective is to allow the financial system to test cash-in and cash-out transactions with crypto assets.

An entity supervised by the Financial Superintendence (Superfinanciera) must accompany the companies that offer services with cryptocurrencies in Colombia. In 2020, exchanges wanting to participate in the pilot plan had to submit several requirements to the regulatory body. They had to make partnerships with Colombian financial institutions.

Only 9 of the 14 proposals met all the requirements: Banco de Bogotá with Bitso and Buda, Bancolombia with Gemini, Davivienda and Powwi with Binance, Banco de Bogotá with Buda, Coltefinanciera with Obsidiam, Coink with Banexcoin, and Movii with Panda and Bitpoint.

The Colombian Financial System Has Changed Its View on Bitcoin and Other Cryptocurrencies

The pilot plan will integrate other financial entities such as the Banco de la República and the Superintendence of Companies. Financial superintendent Jorge Castaño Gutiérrez said that the analysis of the results would begin at the end of that stage. Then, it will run until March 2022, when there will be a complete evaluation and definitive outcomes on the viability of the mechanism.

Exchanges and banks can now make partnerships while the Colombian financial system has changed its view on cryptocurrencies. In this way, the latter leaves behind the blockade that exchanges like Buda suffered in the past.

The Chilean company faced problems with Colombian banking in 2017, one year after starting operations in Colombia. Davivienda closed its account without prior notice, arguing that the Financial Superintendence had taken the measure.

Towards the Regulation of Bitcoin and Other Cryptocurrencies in Colombia

Colombian exchanges and banks are conducting a pilot plan with crypto assets. Buda’s country manager Alejandro Beltrán hopes controlled operations will help the industry to have a regulatory framework soon.

Among the objectives the large pilot plan has achieved, the manager talked about the participating cryptocurrency service operators. He said they implement or operate risk management systems following the Financial Action Task Force (FATF) standards.

The executive explained that exchanges must protect consumer rights and ensure addressing user complaints. He added that operations between banks and those platforms must keep records of the terms and conditions of the partnership. Likewise, they must integrate the cash-in and cash-out system with banking entities.

Beltrán stated that the pilot plan would allow replicating the good practices of the financial system in the field of crypto assets. However, Mauricio Toro warned the partnership between banks and exchanges might hide an undertone since the former seems to control everything. He expressed that the banking sector wants to bank a system contrary to traditional banking.

By Alexander Salazar

The Central Bank of Cuba warns people that they run risks when trading crypto assets. The state banking regulator gives legitimacy to the use of digital assets by Cuban citizens.

Resolution 215/2021 of the Central Bank of Cuba (BCC) recognizes payments with Bitcoin (BTC) and other cryptocurrencies on the island. That official decision recently came into effect after its publication in the Official Gazette on August 26^th. This new regulatory framework also establishes the licensing of digital asset service providers operating in the national territory.

The BCC states that the objective of these new norms is to enable the use of some virtual assets in commercial transactions. It also explains that it is the only body that can authorize financial institutions and other legal persons to use crypto assets.

The agencies of the Central State Administration or political and social organizations may not use cryptocurrencies without authorization. They must request the corresponding permit to operate with those assets from the central financial entity of Cuba.

The regulations indicate that the country will maintain the Financial Action Task Force (FATF) standards. They establish the steps to follow in the prevention and detection of money laundering and terrorism financing.

Cuba’s Main Concern is the Risks that Cryptocurrencies Pose

The BCC resolution warns that cryptocurrencies pose risks to monetary policy and financial stability due to their volatility. They also claim that they are assets without support from monetary authorities and with an excess of anonymity of registered users.

These seem to be the main factors that led the authorities to formulate the regulations. In this regard, the media in that country mentioned an alert that Cuban President Miguel Díaz Canel issued in May. He referred to cryptocurrency operations that seek to maximize profits under schemes that could be fraudulent.

Canel said that the country had assessed the convenience of using cryptocurrencies to make relevant decisions. He stated that they are preventing the population from being the victim of scams in the face of world events.

In August, the BCC announced its decision to regulate several virtual assets that people could use in commercial transactions in the country. However, the resolution does not clarify several aspects like which cryptocurrencies to use and the price for transactions.

Bitcoin May Help Ease the Pain of Remittances for Cubans

In April, the Communist Party of Cuba (PPC) announced its decision to include Bitcoin in the economic guidelines for the period 2021-2026. A state official then reported that the nation would study the use of cryptocurrencies in today’s economy.

Although no one knows whether that study exists, American economist Steve Hanke believes that Cuba can profit from Bitcoin. The Caribbean country has the highest average fee payment for sending remittances, which is around 10.53%.

Remittances result from the efforts of many exiles who send money to their families to help them meet basic needs. Bitcoin offers a fast and inexpensive way to send cross-border transfers without resorting to high-cost traditional services.

By Alexander Salazar