Reportedly Brazil & Argentina are working on a different currency to degrade reliance & dependency on the US dollar.
On 22 Jan 2023, FT reported that Brazil and Argentina are working on a common currency, probably a new currency, and for the same thing they may “create the world’s second-largest currency bloc.”
The report noted that this work will further attract other Latin American countries to join them.
“South America’s two biggest economies will discuss the plan at a summit in Buenos Aires this week and will invite other Latin American nations to join,” the report stated.
The report also pointed out that they are planning to introduce the use of the Brazilian real and Argentine peso in the new currency so that the flow of traditional currencies remains stable & at the same time degrade the use of the US dollar over native traditional currencies.
“The initial focus will be on how a new currency, which Brazil suggests calling the ‘sur’ (south), could boost regional trade and reduce reliance on the US dollar… It would at first run in parallel with the Brazilian real and Argentine peso,” Report stated.
Coinbase Crypto exchange CEO Brian Armstrong responded to this news and noted that they should opt for Bitcoin as a new currency for long-term bets.
“Wonder if they would consider moving to Bitcoin – that would probably be the right long-term bet,” Armstrong said.
RealVision CEO & founder Raoul Pal said that no country can adopt a high volatility valued currency.
Few Reports noted that Brazil & Argentina are probably influenced by El Salvador’s Bitcoin adoption plan and there are possibilities that they may adopt Bitcoin or Ethereum as an official currency.