Crypto in LatAm: It’s Complicated 🤪

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Welcome to Latam Insights, or as I like to call it, ‘things are a bit of a mess down south’. This week we’re looking at Venezuelan oil, grumpy American banks, and Argentina’s ongoing quest to find a currency that doesn’t immediately lose value. Buckle up.

Amidst Sanctions and Tanker Seizures, 80% of the Venezuelan Oil Sales Revenue Is Collected Using USDT

Venezuela, it turns out, has really taken a liking to stablecoins, specifically USDT. Apparently, when the world’s financial systems decide you’re a bit…unwelcome, you start looking at other options. Who knew? 🤷

An economist chap named Asdrubal Oliveros (a name that sounds like a Bond villain, frankly) pointed out that because of those pesky U.S. sanctions, things are…tricky. And when things are tricky, you use cryptocurrency, naturally.

He helpfully mentioned in a podcast – because everyone gets their economic news from podcasts these days – that oil production is actually up, which is good. But 80% of that income is now coming in the form of digital tokens. Eighty percent! You’d think someone would be building a solid gold vault for those things, wouldn’t you? 🤨

Oliveros stated:

The most direct link this year to the crypto sector comes from there because ultimately, almost 80% of oil revenue is being collected in cryptocurrencies, in stablecoins.

JPMorgan Freezes Accounts From ‘High Risk’ Stablecoin Startups Kontigo and Blindpay

Stablecoin companies are apparently causing palpitations over at JPMorgan. It seems somebody thinks these newfangled digital currencies are a bit…dangerous. Imagine! 😱

According to The Information (a publication that sounds like a spy novel), JPMorgan decided to freeze the accounts of a couple of Latin American startups they deemed “high risk”. Because, you know, stability is so overrated.

The unfortunate victims? Blindpay, doing business in Argentina, Mexico, Colombia, and Brazil, and Kontigo, which helps people in Venezuela move money around. Seems a bit harsh, doesn’t it? Their defense? “Oh, it wasn’t about what they do, but just… general caution.” Right. Sure it wasn’t. 😉

Libra Saga: Hayden Davis Signed NDA to Become Argentina’s Blockchain Advisor

Turns out, Argentina’s President Javier Milei has been getting cozy with the people behind Libra. Who could have predicted that? 🙄

Apparently, he signed a Non-Disclosure Agreement (NDA) with Hayden Davis – the CEO of Kelsier Ventures – just weeks before Libra launched. An NDA! The mystery! The intrigue! It’s all terribly exciting…or maybe just slightly concerning.

The agreement, written in Spanish (because of course it is), appoints Davis as an “ad-honorem” blockchain and AI advisor. Which sounds very important, in a vaguely undefined kind of way.

Basically, he’s agreed to give Argentina advice on fancy new technologies…and keep his mouth shut about it. The wording is suitably flowery, promising “professional support, aligned with global trends…ensuring the highest quality and confidentiality.” Honestly, it sounds like a promotional blurb for a tech conference.

FAQ

  • What role does USDT play in Venezuela’s oil revenue?
    A rather large one! Venezuela gets 80% of its oil money via USDT, because traditional financial systems are being… difficult.

  • Which companies has JPMorgan targeted in Latin America?
    Poor Kontigo and Blindpay. JPMorgan decided they were too ‘high risk’ and froze their accounts. Because banks love a bit of drama. 😒

  • What recent agreement has President Milei of Argentina signed?
    He signed an NDA with Hayden Davis, making him an “ad-honorem” blockchain advisor. It’s all very clandestine. 🕵️

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2025-12-28 11:58