Welcome to Latam Insights. This compiled the most relevant crypto news from Latin America last week. This Week’s Edition: A Blockchain Sleuth finds evidence of El Salvador’s “re-shuffle” Bitcoin. Meliuz will begin to take advantage of options-based strategies to win more Bitcoin.
Blockchain Sluth points out that El Salvador could be “recycled bitcoin.”
El Salvador, one of the pioneers who established the Bitcoin Reserve and first enacted Bitcoin as fiat currency, is under scrutiny due to suspected purchases of Bitcoin. President Bukere has said his administration will “never stop” buying Bitcoin, but data on the chain suggests that the country may be shuffling Bitcoin from its address.
On September 9th, Sani, founder of the Time Chain Index Platform, found evidence of what is called the “Bitcoin recycling” process. Sani pointed out that 3KHF5Jymkttviu2jnp5rffedqbvjydrykc, the BTC address linked to El Salvador’s alleged purchases, has withdrawn 63 btc from Binance, the exchange associated with these transactions.
Sani revealed that transactions from this address have been made to Binance and subsequent withdrawal from Binance to El Salvador’s own address. On September 7th, when Bukere himself announced that he had acquired 21 BTC to celebrate Bitcoin Day, Sani explains that the address sent 21 BTC directly to the country’s address.
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Meliuz announces options-based Bitcoin strategy to expand the Ministry of Finance
Meliuz, a pioneer in establishing a Bitcoin Strategic Reserve in Latam, has announced a new strategy to continue acquiring Bitcoin with a low-risk approach. The company will leverage these derivatives and Bitcoin volatility to implement a new option-based strategy that will expand over 600 Bitcoin stashes.
According to local media, Meliuz will begin selling Put Options at certain strike prices. For example, if Meliuz sells options contracts for Strike Price and Bitcoin exceed that number for $95,000, the company will retain the premium after the contract is executed.
Conversely, if Bitcoin jumps under the strike price, Meliuz will have to buy more BTC at that strike price. Nevertheless, the company estimates there are no strategic losses associated with the operation, as the aim is to accumulate more Bitcoin.
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Uruguay Central Bank investigates implementation of digital currency
The Uruguay Central Bank is conducting a deep restructuring that includes an analysis of the implementation of potential digital currencies in the country’s economy. According to local media, the process did not reveal the reason behind the move when the institution began last August when it removed economic policy and market manager Adolfo Salmiento from his position.
Most recently, the bank reported that Salmiento’s removal is “part of new governance, following international best practices, involving the creation of Chief Economist status and general manager positions.”
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