Latam Insights — Argentina Reaches IMF Agreement, Bitfarms to Open New Mining Operations in Paraguay

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue, Argentina reached a new agreement with the International Monetary Fund (IMF), Bitfarms will open two bitcoin mining farms in Paraguay, and Venezuela is now accepting MIR card payments.

Argentina Reaches New Disbursement Agreement With the IMF

Argentina has reached a new agreement with the International Monetary Fund (IMF) to accelerate the delivery of resources during this year. According to Economy Minister Sergio Massa, this new deal includes the disbursement of funds to Argentina in August and November, allowing the embattled nation to replenish its reserves at least for this year. While Massa declined to mention specific numbers, he stated these payments were able to fulfill the country’s expectations.

Also, Massa declared this agreement reinforces the ability of the Central Bank of Argentina to intervene and balance its internal exchange system. The bank had been reducing foreign currency sales to importers as its reserves touched historic lows.

Massa explained:

From now on, you have a Central Bank that does not have a dilemma to make payments and you have less pressure on financial dollars that influence price remarking.

Bitfarms to Launch Two Bitcoin Mining Farms in Paraguay

Bitfarms, a Nasdaq-listed Bitcoin mining company, announced that it had secured two power purchasing agreements in Paraguay to build two new Bitcoin mining operations in the country. The company acquired up to 50 MW of power in Villarrica and 100 MW in Iguazu. The power contracted has a hydroelectrical origin to ensure the new sites will operate using renewables.

Geoff Morphy, CEO of Bitfarms, declared:

Paraguay has access to an abundance of surplus renewable power, and these acquisitions secure valuable, yet limited, sustainable energy contracts while broadening our foothold in a resource-rich country.

Villarrica’s site construction is slated to start in Q3 2023, while a construction timeline for Iguazu hasn’t been determined yet.

Venezuela Starts Processing MIR Card Payments

Russian Ambassador to Caracas Sergey Melik-Bagdasarov informed that Venezuela was already processing payments from Russian MIR cards. The pioneer spot for this adoption move is located on the eastern island of Margarita, a tourist location.

Melik-Bagdasarov stated:

The start of [Mir card] payments has already begun on Margarita Island, which is ready to host and is accommodating Russian tourists.

The ambassador stated that while Mir payments were also being tested in Caracas, the Venezuelan capital, there were still technical issues to be addressed. The Venezuelan government announced it was working on this integration in June.

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