Latam Insights: Bukele Goes Chavez Mode Against High Prices, Paraguay Strengthens Power Theft Penalties For Crypto Mining

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: President Nayib Bukele starts combating price gouging practices in El Salvador a la Chavez, Paraguay enacts penalties of up to 10 years of jail time for power theft linked to crypto mining activities, and Venezuelans sent over $460 million in crypto remittances during 2023.

‘Going Full Hugo Chavez’: Bukele Expands Farmers’ Markets in El Salvador to Fight Price Gouging Practices

President Nayib Bukele is now fighting against food speculators and price gouging practices in El Salvador, comparing himself with the late Venezuelan president Hugo Chavez. After giving an ultimatum to food importers and wholesalers last week, declaring they were “abusing” the people of El Salvador, Bukele has gone full offense by expanding the reach of the so-called Farmers’ Market in El Salvador.

Farmers’ Markets are points where Salvadorans can acquire a limited number of items at prices dictated by Bukele’s government at lower prices. Bukele stated that he would double the number of these markets, and maintain them open all week long, instead of only on weekends.

He declared that due to Farmer’s Markets now “producers and importers tell me they can lower prices even more due to the increase in sales and the fact that they can now also buy their supplies wholesale.” “Since the middleman is no longer extorting them and their profits have tripled, they want to support this new scheme with part of their windfall,” he concluded.

Paraguayan Senate Passes Law Imposing Up to 10 Years of Jail Time on Crypto Miners for Electricity Theft

Paraguay is strengthening its stance against illegal cryptocurrency mining and power theft linked to these activities. The Paraguayan senate passed on Thursday a series of reforms directed to give authorities like the National Power Administration (ANDE) and national tribunals tools to impose harsh penalties on criminals mining cryptocurrency with stolen energy.

The Senate approved the modified text sent by the lower chamber where energy theft not linked to cryptocurrency mining or other similar activities can be punished with up to 3 years of jail time or undefined fines. In comparison, power theft linked to cryptocurrency mining activities will be punished with jail time of up to 10 years.

These penalties will apply when detecting any irregular connections to distribution networks, irregular derivations of existing connections, manipulation of meters, or other electrical consumption control elements.

Venezuelans Sent Over $460 Million in Remittances Using Crypto in 2023

Remittances have become a lifeline for the Venezuelans left in the country, as migrants have consistently sent money to the ones left behind. According to data from the Inter-Agency Coordination Platform for Refugees and Migrants from Venezuela recently reviewed by Bloomberg, over 7.7 million Venezuelans have migrated to other latitudes seeking better economic conditions.

These migrants sent over $5.5 billion in remittances in 2023, using mostly unofficial intermediaries with bank accounts in the origin countries and Venezuela. These numbers make Venezuela one of the largest remittance-receiving countries in South America. Chainalysis stated that 9%, or over $461 million, arrived in Venezuelan hands using cryptocurrency rails.

Over 30% of Venezuelan households receive some help via remittances, and this is only poised to increase.

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