Latest news with #SantiagoLimachi
Mint
26-06-2025
- Business
- Mint
Crypto gains foothold in Bolivia as small businesses seek currency alternatives
Bolivians using crypto as hedge against currency devaluation Crypto ATMs, stores accepting Bitcoin or Tether pop up in cities Economists warn trend is not a sign of stability Other Latam countries have also been adopting crypto By Santiago Limachi and Lucinda Elliott COCHABAMBA, Bolivia, June 26 (Reuters) - In the busy shopping district of the Bolivian city of Cochabamba, ATMs let shoppers swap coins for cryptocurrency, beauty salons offer cut-price deals if you pay in Bitcoin, and people use Binance accounts to buy fried chicken. Bolivians are facing a rising economic crisis, with reserves of dollars near zero, inflation at 40-year highs and fuel shortages causing long lines at the pump. The country's currency has lost half its value on the black market this year, even as the official exchange rate has been held artificially steady by government intervention. Some Bolivians are now turning to crypto exchanges like Binance, cryptocurrencies like Bitcoin, and stablecoins like Tether as a hedge against the depreciation of the boliviano. Official data is patchy, and cryptocurrency was outlawed in Bolivia until last year, but the most recent central bank figures showed transactions of digital assets at $24 million in October. Analysts estimate it has since risen significantly. In the speed of uptake, "Bolivia is now comparable to countries like Argentina and Venezuela," said Mauricio Torrelio from the Bolivian Blockchain Chamber. The overall size of the market, though, remains well behind those South American neighbors and other transactions domestically. Jose Gabriel Espinoza, former head of Bolivia's central bank, estimated that daily USDT volumes hover around $600,000, a fraction of the $18-$22 million in the formal financial sector and $12-$14 million in the cash-based black market. "While crypto is growing, it's still a nascent market," he said. Torrelio said Binance was the most popular platform locally, for its relatively low transfer fees and peer-to-peer trading. The world's largest cryptocurrency exchange, Binance has come under scrutiny globally. It agreed to pay a fine of over $4.3 billion in 2023 after pleading guilty to violating U.S. laws against money laundering. In Cochabamba, Pablo Unzueta's steakhouse Bros allows customers to pay via Binance accounts or buy Bitcoin using an ATM linked to Blink, a crypto wallet developed in Central American country El Salvador - which made waves in 2021 when it made Bitcoin legal tender. "If you go to the banks today, they don't have dollars," Unzueta told Reuters. "Paying for a chicken with Bitcoin or saving in Bitcoin is the most innovative and promising thing a city like Cochabamba can do." Unzueta demonstrated how the ATM works, feeding a one-boliviano ($0.14) coin into the machine. "The idea is to move away from the piggy bank and instead use this technology." Carla Jones, a local spa and salon owner, offers incentives to customers who pay with crypto assets, which she said both attracted younger customers and acted as a savings safeguard. "If you buy three tanning sessions, you get a discount if you pay with Bitcoin," she said. "It's a way to keep my money safe and also try to grow my wealth." 'THIS IS NOT A SIGN OF STABILITY' Bolivia is facing its most acute economic crisis in a generation. Dwindling domestic gas production has forced it to import costly fuel, eroding its foreign currency reserves, and making it hard to continue to pay for imports. The lack of dollars has spawned a black currency market, with a wide gap between the formal and parallel FX rates. On the street, you need over 16 bolivianos to buy a dollar versus the largely symbolic official rate of around 6.9 per dollar. Crypto proponents have pushed blockchain-based tokens as an answer. On June 7, Tether chief executive Paolo Ardoino posted photos from a duty-free shop in the Bolivian city of Santa Cruz, showing items like sunglasses and Oreo cookies priced in USDT, the firm's dollar-pegged stablecoin. "A silent revolutionary shift: digital dollars powering daily life, commerce, and economic stability," he said on X. Economists, however, warned it was not so rosy. "This isn't a sign of stability," said former central bank head Espinoza. "It's more a reflection of the deteriorating purchasing power of households." Peter Howson, assistant professor in international development at Northumbria University in Britain, warned that Bolivians would be vulnerable to crypto's constant fluctuation in value. "We've seen in Bolivia and across Latin America, what we call 'crypto-colonialism'. Crypto companies try to convince the rural poor to invest what little real money they have in a cryptocurrency," he told Reuters. "When it goes down in price, no vendor wants to accept it." But in Cochabamba, 35-year-old Andree Canelas is a Bitcoin enthusiast, helping install crypto ATMs in shops and cafes. "More and more people have understood that if they save bolivianos and keep them in their tills for too long, they're going to lose purchasing power," Canelas said. Cryptocurrencies did come with risk, he said, but added: "They may see some volatility in the short or medium term, but long term it's a good store of capital." (Reporting by Santiago Limachi in Cochabamba and Lucinda Elliott in Montevideo; Additional reporting by Monica Machicao in La Paz, Elizabeth Howcroft in Paris, and Ipa Ibáñez in Santa Cruz; Editing by Adam Jourdan and Rosalba O'Brien)
Yahoo
08-04-2025
- Climate
- Yahoo
As Bolivia floods, cows swim where they once grazed
By Monica Machicao and Santiago Limachi BENI, Bolivia (Reuters) -In Bolivia's rural region of Beni near the border with Brazil, vast grasslands where cows once grazed have been submerged, forcing cattle and the cowboys that herd them to swim or wade to reach small patches of higher ground. The South American nation has been hit by some of the most intense rains in decades, which have left soy fields and ranches underwater, putting at risk exports to overseas markets and pushing up local food prices. "The flooding we are experiencing right now is very unusual, very severe for this time of year," cattle rancher Gunther Amatller told Reuters as he rescued his livestock from the flood waters. "The water just keeps rising. It's hard to predict how much higher it will rise." According to local estimates, some 200,000 head of cattle, or about 2% of the national herd, are at risk, struggling with flood water and fatigue. Beni supplies beef nationwide and exports to markets such as China. The floods have hit 590,000 families and killed at least 55 people. "My cattle are suffering and the animals are emaciated. Plus, there are a lot of snakes and jaguars in that flooded area," lamented Teresa Vargas, owner of the Cheperepije ranch. Climate change has altered weather patterns, according to experts, delaying rains and making them more intense. The Mamoré River, an Amazonian river that runs through Bolivia and Brazil, has burst its banks, flooding everything in its path. In towns such as Puerto Almacén and Puerto Ballivián, entire families have abandoned their homes, seeking refuge in makeshift shelters on the side of the road. "We are forced to leave our houses," Mayra Peralta said, her voice breaking. "Every day, the water rises." In Loma Calatayud, Jesús Martínez helplessly showed how his rice, plantain, and cassava crops have disappeared. His wife cooks precariously on a wooden platform, while water surrounds their home. "Everything is underwater," said Jesús. Indigenous women, such as Edilberta Huaginoe, cook in hastily constructed camps on higher ground, trying to feed their children with what little they can salvage from the water. "The rice is underwater, the plantains and cassava are underwater, and we can't get them out because they're too deep," said Edilberta. "This is where we'll come to sleep until the water recedes."
Yahoo
13-03-2025
- Business
- Yahoo
Bolivia's soy farmers on edge as fuel shortage hits harvest
By Santiago Limachi and Monica Machicao SANTA CRUZ DE LA SIERRA, Bolivia (Reuters) - In Bolivia's farm region of Santa Cruz, a worsening fuel shortage is starting to hit farmers' ability to harvest their crops, a concern for the embattled South American country where agriculture has become a key economic driver. The fuel scarcity, which has led to long lines at the pump, stems from a slide in foreign currency reserves over the last decade and dwindling local gas production that is reaching crisis levels. The situation is rattling the government of President Luis Arce, which has sought to cap prices with subsidies. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. "If there is no fuel, producers will go deeper into debt," said Joel Eizaguirre, a soybean producer in the lowland region of Santa Cruz, the main farm belt of the country. "We're going to be left with producers who will start to make other choices, and it's going to affect everyone." Jaime Fernando Hernandez, manager of oilseed and wheat group ANAPO, said that if there was not enough diesel for the farm machinery and tractors, then a large amount of food - including soy, corn and sorghum - could be lost. This would send ripples through the food chain and affect production of livestock, chicken, milk and eggs. "The impact in terms of productivity and food production could be truly catastrophic," he said. Bolivia's government, under growing pressure due to the dollar and fuel crisis, has moved to try to ease imports, letting state energy firm YPFB use cryptocurrency to pay for fuel cargoes and to pay companies. Farmer Eizaguirre said he would prefer to pay more for fuel than to not have enough, referring to the parallel exchange rate that has hit more than 11 bolivianos per dollar versus 6.86 at the controlled official rate amid the hard-currency shortage. "Personally, I'd rather have fuel cost 11 bolivianos than not have enough fuel to harvest our grain, or not be able to plant during this approaching winter," he said.
