• Brazil and Argentina are considering creating a new currency, called the “sur”.
• Bitcoiners have suggested that the two countries adopt Bitcoin (BTC) as legal tender instead.
• Coinbase CEO Brian Armstrong suggested that “moving to Bitcoin” would “probably be the right long-term move” for the two countries.
Brazil and Argentina are in the midst of a serious discussion on the possibility of creating a new currency called the “sur” to boost regional trade and reduce reliance on the US dollar. This news comes from a Perfil article jointly penned by Alberto Fernández and Luiz Inácio Lula da Silva, the respective presidents of Argentina and Brazil.
However, members of the Bitcoin community have suggested a different course of action: that the two countries adopt Bitcoin (BTC) as legal tender instead of creating a new currency. Gabor Gurbacs, a Strategy Advisor at VanEck, took to Twitter to comment on the situation, writing that “the answer isn’t a new fiat currency. The answer is adopting Bitcoin and tokenized gold. Eventually countries will learn this lesson.” Christopher Calicott also weighed in, pointing out that Brazil and Argentina weren’t even in the “game” of currency creation if they weren’t considering issuing it on Bitcoin-Lightning rails.
Perhaps the most influential voice in the conversation was Coinbase CEO Brian Armstrong, who wrote that “moving to Bitcoin” would “probably be the right long-term move” for the two countries. He pointed out that this would enable them to benefit from the advantages of a borderless, digital currency, such as security, low transaction fees, and fast settlement times. Armstrong also noted that it would be beneficial to both countries to reduce their reliance on the US dollar, which has a significant impact on their economies.
In order to make this a reality, Brazil and Argentina will need to invest in the necessary infrastructure to support Bitcoin transactions, as well as provide education and training so that their citizens are familiar with the currency and understand how to use it. They will also need to create a regulatory framework that is conducive to the adoption of Bitcoin and provides sufficient consumer protection.
It is clear that Brazil and Argentina have a big decision to make. The traditional route of creating a new currency is a risky endeavor and may not provide the economic stability that both countries are hoping for. On the other hand, adopting Bitcoin could be a revolutionary step, providing them with a secure, digital currency that could revolutionize their economies and reduce their reliance on the US dollar. Only time will tell which path they will choose.