The Most Relevant Crypto and Economic News from Latin America

This week's Latam Insights compendium includes Libra's founders facing a class action lawsuit, a bitcoin wages bill being introduced in the Brazilian Congress

Welcome to Latam Insights, a weekly compendium of the most relevant crypto and economic news from Latin America. In this week’s edition, we highlight a class action lawsuit launched against the founders of Libra, a bitcoin wages bill introduced in the Brazilian Congress, and a Venezuelan minister’s claim that 25% of international trade can be settled without using the dollar.

Libra’s ‘Misleading Launch’ Faces Class-Action Lawsuit

The launch of La Libertad Avanza’s token, better known as Libra, whose launch was shared by Argentina’s president Javier Milei, is getting its first class action lawsuit in the U.S.

Burwick Law recently announced the introduction of such legal action before the Supreme Court of New York, alleging that the parties behind the token “orchestrated an unfair token launch, allegedly misleading purchasers and harming retail investors.”

While the lawsuit mentions President Milei’s endorsement as a key to creating an appearance of “legitimacy and significant investment value” for Libra, he is not directly accused of facilitating the alleged scheme. His sister Karina Milei, who has also been implicated by third parties, is not mentioned either.

Nonetheless, other parties publicly linked to Libra, including Kelsier Ventures, KIP Protocol, and Meteora, are included as defendants in the complaint.

Wages Paid in Bitcoin? Bill Introduced in Brazil Might Make It Possible

A new bill has been introduced in Congress to regulate the payment of wages and other labor-linked obligations using bitcoin in Brazil. The bill, titled “Regulation of the Payment of Salaries, Remunerations, and Labor Benefits with the Use of Virtual Assets,” opens the door for workers to legally receive part of their salary in bitcoin or another virtual asset.

Introduced and sponsored by Luiz Philippe de Orleans e Bragança, the bill will need to be analyzed and pass the scrutiny of the Chamber of Deputies, which will decide if the project advances further to the Senate.

If passed, workers might be able to receive up to 50% of their wages in bitcoin, provided there is mutual acceptance from both workers and employers. The value of the assets will have to be certified by an entity authorized by the central bank.

Venezuelan Minister Remarks 25% of Trade Can Be Settled Away From the US Dollar

International trade markets have been evolving to open their possibilities to the usage of currencies different from the U.S. dollar. This is the opinion of Venezuelan Foreign Minister Yvan Gil, who remarked on the trade policy changes that a multi-polar world has brought for international settlements.

In a recent article celebrating 80 years of international relations with Russia, Gil highlighted this development that was possible due to the BRICS bloc—an organization integrated by Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates—and its de-dollarization push.

Gil stated:

At least 25% of global trade operations can be conducted without being tied to the dollar (without using the dollar), which will be a significant step towards greater financial independence of countries subject to sanctions.

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