Latam Insights: Cryptocurrency Updates
This week’s edition of Latam Insights brings key updates from the cryptocurrency landscape in Latin America, featuring notable developments from Argentina, Colombia, and Guatemala.
Argentina’s Cryptocurrency Unit Disbanded
Argentine President Javier Milei has officially disbanded the investigative unit focused on the cryptocurrency Libra, which had formed earlier this year under Decree 114/2025. This unit was responsible for examining the fluctuations of Libra’s value, especially following Milei’s February endorsement of the digital asset, which coincided with a significant price spike and subsequent crash.
The UTI collaborated with various national agencies, including the Central Bank and the Financial Information Unit, to present its findings to the Prosecutor General’s office. However, recent reports raised concerns over possible insider trading, as certain officials allegedly sold off their Libra holdings after Milei’s recommendation, leading to allegations of market manipulation.
Despite the completion of the UTI’s work, a congressional investigation initiated in April remains ongoing, with opposition lawmakers criticizing Milei for potentially conflating his public responsibilities with private interests, especially after claims emerged regarding substantial undocumented contributions from business associates during his campaign events.
Colombia’s Central Bank Digital Currency
In Colombia, advancements in digital finance are underway as the country embarks on testing a central bank digital currency (CBDC). In a recent interview, Maghnus Mareneck, co-CEO of Interchain Labs, confirmed that their collaboration with Colombian banking institutions and the government aims to pilot a CBDC designed specifically for cross-border transactions.
Although specifics about the currency remain limited, it is set to operate on the Cosmos blockchain with IBC Eureka technology, providing a secure and private platform for the Colombian government without depending on external public infrastructure.
Guatemala’s Advancements in Remittances
Additionally, Banco Industrial, Guatemala’s largest bank, has partnered with Sukupay to enhance its remittance services through cryptocurrency solutions. This collaboration allows Banco Industrial customers to send and receive remittances for a nominal fee of just $0.99, conveniently depositing these funds directly into their bank accounts.
Michel Caputi, who leads the bank’s Strategic Alliances Division, noted that integrating cryptocurrency represents a significant advancement in solving traditional financial challenges. This initiative marks a historic moment, as Sukupay claims to be the first crypto-native platform fully operational within a major retail bank in Latin America.
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