Coinbase chief executive Brian Armstrong has hinted Brazil and Argentina should adopt Bitcoin (BTC) as a sovereign currency, according to a recent report.
The two South American nations announced on Saturday they had launched plans to use the digital coins along with their respective national currencies.
The report noted that both nations would soon invite other Latin American nations to join the world’s second-largest currency bloc. It added that it planned to outline its efforts at a summit in Buenos Aires and later, invite additional nations on the continent to join.
Brazil aims to create potentially the “Sur,” or South, to reduce dependence on the US dollar. Countries such as Venezuela have created similar currencies such as the Petro in recent years for similar reasons.
Speaking to the Financial Times (FT), Argentinian economy minister Sergio Massa said,
“There will be . . . a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks.”
Replying to the news, Armstrong tweeted the following day that it could be a “right long-term bet” and hoped both countries would consider the option.
Crypto as Legal Tender
His comments come after numerous countries have begun adopting BTC as sovereign currencies. El Salvador has long remained a supporter of Bitcoin as its national currency after it adopted it in 2021.
In late November last year, the Brazilian Chamber of Deputies approved measures to legalise cryptocurrencies for payments across the nation. Former president Jair Bolsonaro signed off on the bill last month, which will enter force in June this year.
The Argentinian province of San Luis also passed a bill for a future US dollar-linked stablecoin for adults 18 and over and backed by government assets.
Nations such as Fiji and Tonga have also pushed for similar legislation. In late December, the former nation’s new prime minister, Lord Fusitu’a, announced support for Bitcoin adoption in Fiji.
He stated at the time that Fiji could “do bitcoin legal tender like Tonga,” allowing two Pacific islander nations to have two legal tenders for 2023.
