Brazil and Argentina to Start Working on Creation of Latam Common Currency
Brazil and Argentina are looking to begin work on the issuance of a common currency. Sergio Massa, minister of the economy of Argentina, also stated that the two countries will be inviting other nations in the area to join this economic integration project in the future.
Brazil and Argentina to Spearhead Common Currency Issuance Project
Ministries of Brazil and Argentina will be discussing the first steps to issue a common bilateral currency. According to statements given by the minister of the economy of Argentina, Sergio Massa, representatives of both countries will be discussing this subject at the CELAC summit in Buenos Aires on Jan. 24.
Massa told Financial Times that the discussion would revolve around initial considerations for the issuance of the coin that would be called “sur,” Spanish for south. Massa stated:
There will be … a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks.
Massa warned this kind of project would take time to come to fruition, mentioning the Euro as an example, which was in the making for 35 years before being finally adopted in the European Union. He explained:
I don’t want to create any false expectations … it’s the first step on a long road which Latam must travel.
An Invitation for Latam
While the currency would be first studied and designed to be a bilateral endeavor, the project could be extended to include more nations in Latam in the long run. “It is Argentina and Brazil inviting the rest of the region,” Massa explained.
The project of a common currency for Latam has been gaining some steam during the last year. President of Brazil Luis Inacio Lula Da Silva had referred to this development before as part of his presidential campaign. At a party rally in May, Lula Da Silva declared his intention of participating in the creation of this common currency project, adding that the objective would be to decrease the dependence of Latam countries on the U.S. dollar.
In November, Nicolas Maduro, president of Venezuela, gave his support to the idea, stating that it would be “extraordinary.” He also called for the inclusion of cryptocurrencies as part of the monetary system of the 21st century.
Tags in this story Argentina, Brazil, common currency, Euro, financial times, latam, luis inacio lula da silva, Nicolas Maduro, Sergio Massa, Sur, U.S. dollar
What do you think about the issuance of a common currency in Latam? Tell us in the comments section below.
Morgan Stanley CEO Says Inflation Has Peaked and China Has Made a Major Pivot ECONOMICS | 2 days ago All Eyes on the Next Fed Meeting: Market Trajectories Hinge on Decision ECONOMICS | 3 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Bridged Bitcoin on Avalanche Surpasses Value Locked on the Lightning Network
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% … read more.
UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn’t Be Surprised if Stocks Fell 40% Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method