Welcome to Latam Insights, our roundup of the most relevant crypto news from Latin America over the past week. In this edition, Venezuela upholds a ban on crypto mining as electricity demand soars, Tether sues Brazil’s Titan Holding for $300 million, and stablecoins dominate Peru’s crypto market.
Important points:
- Since May 7, demand has reached 15,579MW, and Venezuela upholds a mining ban and then plans to impose sanctions on illegal operators.
- Tether is suing Titan Holding over a $300 million loan default and is then seeking an asset freeze to recover the funds.
- Binance points out that stablecoins drive 90% of Peru’s $28 billion crypto market, with the aim of cutting out money transfer intermediaries.
Venezuela sticks to ban on crypto mining as electricity demand hits nine-year peak
The Venezuelan government issued a statement reiterating the continued ban on digital mining operations as the country faces peak energy demand, prompting power rationing measures that affect the population.
The statement stressed that on May 7, the peak demand on the national electricity system was 15,579 MW, the highest in nine years, due to the continued heat wave and continued growth of the domestic economy.
Regarding cryptocurrency mining, the following is said: “We support the absolute ban on digital mining on the national territory. Those who illegally exploit this activity will be sanctioned as provided by law.” Additionally, authorities have developed a monitoring plan to implement this order.
read more.
Tether sues Titan Holding in Brazil to recover $300 million in defaulted debt
Tether filed suit in São Paulo to recover $300 million it owed Titan Holding, part of a master conglomerate owned by Daniel Borcaro.
Mr. Volcalo, who was arrested on Thursday, was also the owner of Banco Master, which was found to have a $2.2 billion hole in its reserves and was liquidated by Brazil’s central bank in November.
The loan was issued by Tether Investments a year ago, before the master conglomerate scandal exploded, affecting more than 1 million customers, according to local media. The loan was scheduled to be repaid by March 28, 12 months after it was issued.
Nevertheless, as of this writing, Tether has not received any repayment from Titan Holdings. In its lawsuit, Tether demands: “Financial assets deposited in bank accounts, financial applications, investments, and other financial assets held by Defendants Titan, Master Holding, and Master Participants are ordered to be frozen.”
read more.
90% of Peru’s $28 billion crypto market is powered by stablecoins
Daniel Acosta, general manager for Latin America North at Binance, recently commented on the relevance of these digital assets in the country, highlighting that these digital assets are responsible for the majority of crypto transactions originating from Peru.
According to Criptonoticias, Acosta said that Peru’s cryptocurrency market has an annual transaction value of $28 billion, and that 90% of its operations involve stablecoins pegged to the dollar.
For Acosta, one of the drivers of this high level of adoption is the use of these as dollar agents for remittances and cross-border payments, as they can eliminate intermediaries, reduce costs and increase the efficiency of these processes.
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