Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Honduras opens a central bank digital currency (CBDC) consultation, Venezuela applies officially to join BRICS, and Trubit launches Pix payment integration in Brazil.
Honduras Opens CBDC Issuance Public Consultation
The Central Bank of Honduras has opened a public consultation regarding issuing a central bank digital currency (CBDC). The public consultation marks the next phase of a plan to modernize the country’s payment systems. In a report issued by the bank, titled “The Future of Money and Payments in Honduras, which route to Follow?” the institution considers the implications and changes it must apply to its legal system to adopt a CBDC.
The poll asks users about the central bank’s role in the national payments system, proposing a series of options to modernize it, including launching a CBDC, designing a bank-managed payments system, and promoting the adoption of stablecoins.
Honduras faces challenges on the financial inclusion front, as only 33% of the population had access to a bank account by 2021 while the rest relied on cash, according to the National Commission of Banks and Insurance. In 2017, 75% of the payments were made using physical money, per Mastercard numbers.
Venezuela Officially Applies to Be Part of BRICS
The government of Venezuela has presented an official application to join the BRICS bloc, integrated by Brazil, Russia, India, China, and South Africa. Venezuelan President Nicolas Maduro stated that he was optimistic about the reception of the proposal by the bloc.
He stated:
Venezuela made its proposal to join the group and we hope it will be positively valued by the nations that integrate it.
Venezuela has the support of Brazilian President Luiz Inacio “Lula” de Silva, who in May told Maduro he favored the entrance of Venezuela into BRICS. The applications of at least 25 nations will be discussed in the next BRICS summit that will be held in South Africa later this month.
Trubit Integrates Pix Payments in Brazil
Trubit, a Latam-focused cryptocurrency wallet and exchange platform, has integrated Pix functionality into its platform, marking its entrance into the Brazilian market. According to the Brazilian central bank, Pix is the most used payment system in Brazil, accounting for 30% of the transactions made in 2022, surpassing the usage of more traditional payment methods like credit and debit cards.
With Pix’s integration, Trubit allows Brazilians to deposit and withdraw Brazilian reales into its platform. “We believe this milestone integration will facilitate a much easier and faster user experience on our TruBit platform,” said Maggie Wu, CEO of TruBit. In June, the company launched MMXN, a Mexican peso-pegged stablecoin.
To follow all the latest developments in crypto and the economy in Latin America, sign up for our Latam newsletter below.
What do you think about this week’s Latam Insights report? Tell us in the comment section below.
