Latam Coin Shared to Focus on Settlements Between Mercosur and BRICS Countries – Economics Bitcoin News

President of Brazil Luiz Inacio Lula da Silva outlined the scope and reach of the common currency that Brazil and Argentina are considering issuing in Latin America. Lula da Silva explained that he believes this currency will be used to settle cross-border payments between the two countries as well as the BRICS and Mercosur countries.

Lula demonstrates the intention of a common currency for Latin America

Luiz Inacio Lula da Silva, President of Brazil, explained the facts surrounding the intention of Argentina and Brazil to create a common latam currency, which would later be extended to all of Latin America. Arriving in Buenos Aires for the CELAC Heads of State Summit, Lula explained that the discussion would revolve around launching a currency for multilateral settlements between countries of different integration groups, including BRICS and Mercosur.

Lula da Silva said:

Why not create a common currency with the Mercosur countries, with the BRICS countries? I think this is what will happen. You can create a type of currency for trade determined by the central bank.

Lula also stated that he prefers to always settle international business transactions in their countries’ native currencies to reduce dependence on the US dollar.

Fernando Haddad, Brazil’s Minister of Economy, provided more insight into the two countries’ goals, explaining:

Trade is very bad and the problem is precisely the foreign currency, right? So we are trying to find a solution, something common that can grow trade.

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The President of Argentina, Alberto Fernandez, also referred to the virtual currency in the same terms that Lula used. Fernandez explained:

The truth is that we do not know how a common currency between Argentina and Brazil will work, and we do not know how a common currency will work in the region. But what we do know is how the economy works with forex trading.

The joint statements of Fernandez and Lula da Silva went against the expectations that some had about the retail trade and the widespread nature of this currency, which were fueled by statements made by the Argentine Minister of Economy, Sergio Massa, to the Financial Times.

Also, reports from O’Globo show that the common currency memorandum to be signed by the two governments includes a provision to protect each country’s fiat currencies, the Brazilian real and Argentine peso, from being replaced by this settlement-focused currency.

What do you think of the LATAM settlement currency being discussed between Argentina and Brazil? Tell us in the comments section below.

Sergio Gushchenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, getting into the world of crypto when the price spike occurred during December 2017. Having a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom on a social level, he offers a different perspective on the success of crypto and how it helps people. Those who do not deal with banks and the disadvantaged.

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