Latam Crypto News: Mexico Investigates Worldcoin

BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.

This week’s roundup covers Mexico’s investigation into iris-scanning project Worldcoin, MicroStrategy CEO’s speech in Argentina, and more.

María Corina Machado Proposes Bitcoin as Venezuela’s Reserve Asset

María Corina Machado, leader of Venezuela’s opposition to Nicolás Maduro’s government, has introduced a bold proposal to tackle the country’s economic crisis: adopting Bitcoin as a national reserve asset.

“We are grateful for the lifeline that Bitcoin provides, and we hope to adopt it in a new and democratic Venezuela,” Machado said in an interview with Alex Gladstein, Strategy Director at the Human Rights Foundation.

During the interview, Machado emphasized Venezuela’s economic collapse, noting that inflation has skyrocketed by 8,000,000% since 2016. This catastrophic situation has forced millions of Venezuelans to flee the country in search of stability. In addressing Venezuela’s economic woes, Machado stressed the pivotal role Bitcoin has played for many. 

“Some Venezuelans found a lifeline in Bitcoin during hyperinflation, using it to protect their wealth and finance their flight. Today, Bitcoin bypasses government-imposed exchange rates and thus helps many of our people. It has evolved from a humanitarian tool to a vital means of resistance,” she explained.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

Machado also highlighted how Latam country’s citizens have turned to crypto to shield their assets amid hyperinflation, stressing that the cryptocurrency could be crucial in rebuilding the nation’s economy.

“We visualize Bitcoin as part of our national reserves, helping to rebuild what the dictatorship stole. […] Fortunately, unlike bank transfers, which the regime usually blocks, Bitcoin donations cannot be seized. Let’s use this technology to achieve the change that Venezuela desperately needs,” she concluded.

Machado’s proposal positions Bitcoin not only as a financial tool but as a cornerstone for the country’s recovery and resistance against government control.

MicroStrategy CEO Praises Bitcoin During Visit to Argentina

Phong Le, CEO of MicroStrategy, recently attended the “MicroStrategy World: Buenos Aires Edition” event in Argentina, where he shared his insights on Bitcoin and the future of corporate solutions.

During his keynote speech, titled “Let the Data Lifeblood Flow & Bitcoin for Corporations and Government,” Le discussed the impact of artificial intelligence in the workplace, as well as the company’s strategy regarding AI and Bitcoin. He reaffirmed his strong belief in cryptocurrencies, calling Bitcoin “the best financial technology ever invented.”

Reflecting on MicroStrategy’s Bitcoin journey, Le recounted the company’s decision to add BTC to its balance sheet in 2020. He noted the coin’s rise from $11,000 to $67,000 and acknowledged the market downturn following the collapse of fraudulent entities like FTX and Terra Luna.

“In 2020, our company decided to put BTC on its balance sheet. Later, Square did the same. Three months later, Tesla. This is what we call corporate adoption,” he explained.

Read more: Who Owns the Most Bitcoin in 2024?

From a geopolitical standpoint, Le believes Bitcoin could play a key role in shaping the global financial landscape. He predicted that more countries would follow El Salvador’s lead, which adopted Bitcoin as legal tender in 2021.

Le also touched on the upcoming US presidential elections, noting Donald Trump’s pro-Bitcoin stance. “If you want to be the most powerful or relevant country, you have US dollars, you have gold, and you should have BTC,” Le stated. MicroStrategy remains the largest institutional Bitcoin holder, with 226,500 BTC — over 1% of the total Bitcoin supply.

El Salvador’s Financial System Converted Only $6.6 Million to Bitcoin, Reports GAFI

A recent report from the Latin American Financial Action Task Force (GAFILAT) highlights the minimal impact Bitcoin has had in El Salvador since its adoption as legal tender. Despite being the first country to embrace the cryptocurrency, the financial system has only converted $6.6 million to Bitcoin between 2021 and 2024. This amount represents a mere 0.03% of the assets managed by the country’s major banks.

While the Latam country’s government remains optimistic about Bitcoin, GAFILAT’s findings suggest that the crypto has yet to significantly influence the national economy. Remittances sent via digital wallets account for less than 1% of total remittances received. In the first seven months of 2024, Salvadorans abroad sent $49.7 million through digital wallets, a 6.3% decline compared to the previous year.

The report also notes that Salvadoran banks have set strict limits on automatic Bitcoin-to-dollar conversion, capping transactions at $200,000. Additionally, alert systems are in place to detect suspicious activity, though GAFILAT warns that digital asset exchanges still carry risks, including potential use for unregulated cryptocurrency transactions.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Since Bitcoin’s adoption in September 2021, the government established a convertibility trust managed by the Development Bank of El Salvador (Bandesal). However, details regarding the amounts converted remain classified.

Meta has announced that it will inform users in Brazil about how their personal data is used to train its Artificial Intelligence (AI). Notifications will be sent via email and through Facebook and Instagram, asking for permission to use their data.

In July, Meta suspended its Generative AI tool in Brazil after the National Data Protection Authority (ANPD) requested changes to its privacy policy. Despite Meta’s efforts to comply with AI regulations in the country, the tool was halted. Now, the Brazilian Ministry of Health will inform citizens about how Meta plans to use their data, with users given the option to decline.

“We are disappointed with the ANPD’s decision. AI training is not unique to our services, and we are more transparent than many in the industry who have used public content to train their models,” Meta explained. “Our approach complies with Brazilian privacy laws, and we will continue to work with the ANPD to address their concerns. This is a setback for innovation and AI competitiveness, delaying the benefits of AI for people in Brazil.”

Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?

Global efforts to regulate AI remain scattered. In March, the European Parliament passed a regulation aimed at curbing AI practices that infringe on human rights. This includes bans on AI for biometric categorization and unauthorized photo or video captures.

“Thanks to the Parliament, unacceptable AI practices will be banned in Europe, and the rights of workers and citizens will be protected. The new AI Office will help companies comply before the rules take effect. We are ensuring that human values remain central to AI development,” the Parliament stated.

Additionally, the United Nations General Assembly proposed a resolution to create governance systems for AI. The UN urged member states to avoid AI practices that violate human rights or hinder societal development, pushing for systems that promote safety, inclusivity, and sustainable technological growth.

Mexico’s INAI Launches Investigation Into Worldcoin

Adrián Alcalá, president commissioner of Mexico’s National Institute for Transparency, Access to Information, and Protection of Personal Data (INAI), announced that an investigation will be initiated against Worldcoin (WLD) for allegedly obtaining personal data without proper consent.

In recent weeks, Worldcoin has come under fire in several Latam countries, including Chile, Colombia, Ecuador, and Argentina, all raising concerns about crypto project’s data collection practices. The accusations center on improper handling and misuse of personal data. Alcalá confirmed that INAI will now look into potential data violations by Worldcoin, which has been operating in Mexico since last year.

“We initiated an ex officio investigation to analyze the possible data breach by Worldcoin. We invite all persons who feel their information was compromised to file complaints,” Alcalá shared on X.

Read more: What Is Worldcoin? A Guide to the Iris-Scanning Crypto Project

The company is also facing growing criticism from users who claim their privacy was violated. Customers have alleged they were “scammed” by not receiving the promised cryptocurrency payments, and some accuse the company of scanning the irises of minors.

In April, Mexican Congresswoman María Eugenia Hernández introduced a proposal to investigate Worldcoin’s operations. She highlighted the importance of safeguarding Mexicans’ personal data, noting that Mexico had not yet addressed the issue as other nations had. Hernández emphasized the need for clear rules on how private companies handle citizens’ biometric data.

“We cannot allow our citizens’ data to be in the hands of private individuals without clear guidelines for its use. It’s crucial to raise awareness about what this company is doing and the risks of continuing to exchange biometric data for a few cryptocurrencies,” Hernández said.

As the Latam crypto scene grows, these stories highlight the region’s increasing influence in the global market. Stay tuned for more updates and insights in next week’s roundup.