Latin America’s digital currency challenge - Mijail Popov

Implementation of new services and applicationshave come to alter the status quo of the traditional financial system, together with the development of new technologies and a favorable context for the development of innovation. [...] The passing of this law was a clear manifest of the intention to incorporate cryptocurrencies into the traditional financial system, even though the outcomes to date in terms of adoption were not what the government of El Salvador had anticipated. [...] Being the first of its kind in the region, Venezuela represents the pioneer in terms of CBDCs in Latin America with the implementation of its sovereign digital currency, the Petro, in 2017. [...] Vincent and the Grenadines, and Grenada, seven of the eight Eastern Caribbean Dollar using countries that have adopted the use of the CBDC Diamond Cash, and the Bahamas in Central America, which introduced its own CBDC, the Sand Dollar, in 2020. [...] Everything seems to point to increased regulatory progress in cryptocurrencies over the next several years, especially in light of recent events like the bankruptcy of FTX exchange, the collapse of LUNA and TERRA project, and the bankruptcy of the crypto lending platform Celsius, one of the most important in the marke Yet an increasing number of countries, especially in Latin America, are developi.