Proposals for New Common Currency Resonate in Latam, to Undermine US Dollar Dependency – Economics Bitcoin News

Two new proposals for a new common currency to be established in Latam were launched recently. Former Brazilian president and candidate Luis Inacio Lula Da Silva mentioned the idea in May, and the president of Colombia’s National Assembly, Roy Barreras, mentioned the same idea during President Gustavo’s inauguration. Petro earlier this month. The idea behind this would be to reduce the region’s dependence on the US dollar.

Lula and Barreras propose common currency Latam

The proposal for a new common currency to be established among the Latam countries has been revived once again due to the current economic situation facing some of these countries. Two politicians in the region, former Brazilian president Luis Inacio Lula Da Silva and Colombia’s National Assembly President, Roy Barreras, recently called for a review of the initiative.

Last month, Da Silva announced that if he wins the presidential election (he is one of the incumbent presidential candidates Jair Bolsonaro for the general vote to be held in October), he will support the election. create a common coin for Latam. Dubbed “sur” (SUR), which translates as “South”, this currency will clearly enhance integration among countries in the region. At a rally in May, he stated:

We will create a currency in Latam, because we cannot continue to depend on the dollar.

Moreover, this will provide a new opportunity to contain inflation in the region, a problem that countries such as Argentina and Venezuela are currently facing. The rising currency could allow countries to maintain the autonomy of their central bank, contrary to the model adopted by the European Union and dual circulation of national fiat currencies and the rising currency would licensed.

Recently, Roy Barreras also Is called to establish such a currency, without giving details of its specifics. During the inauguration of the newly elected president of Colombia, Gustavo Petro, Barreras stated:

This is a homeland ready to be reborn, in order to join hands with other Latam nations, we decided to share a common destiny, a single competitive agenda, a binding Latam parliament, hoping for a co-existence. money only and above all a dignified voice.

In July, Russian President Vladimir Putin disclosure plans to launch a single currency for countries include the BRICS, an organization that also includes Brazil, which some analysts believe is an attempt to compete with the US dollar.

Common currency platform

The idea of ​​a common currency for Latam is not new. In fact, there is already a common currency used to settle over $1 billion in transactions across the continent. The currency is called “sucre” and is the result of a merger of several countries in the ALBA, a Bolivarian alternative organization that opposes US support FTAA.

Venezuelan President Hugo Chavez was responsible for its creation in 2009, and its adoption in Venezuela, Nicaragua, Cuba, Bolivia and Ecuador. However, the coin was abandoned due to a number of events, including the establishment of US sanctions against Venezuela and the death of the main proponent.

What do you think of the new common currency proposal in Latam? Let us know in the comments section below.

Sergio Goschenko

Sergio is a crypto journalist based in Venezuela. He describes himself as a latecomer to the game, entering the crypto world when the bull run occurred in December 2017. Has a computer engineering background, lives in Venezuela and is affected by the volatility. As the cryptocurrency booms on the social level, he offers a different perspective on the success of cryptocurrency and how it helps the unbanked and underserved.

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