Brazil and Argentina set to launch shared currency, sparking discussions in crypto community

According to information obtained by CoinUnited News, Brazil and Argentina are getting ready to start the creation of a joint currency. The second-largest currency bloc in the world may be created as a result of this action.

At an upcoming summit, Brazil and Argentina will talk about a shared currency.

According to the Financial Times, the two countries will debate the issue during a summit in Buenos Aires and invite other Latin American states to participate in the discussions. Brazil has given the proposed new currency, which it has termed “Sur,” the goal of reducing reliance on the US dollar and boosting regional commerce.

Latin America’s first step on a long journey

Argentina’s finance minister, Sergio Massa, indicated that although the initiative would first be a bilateral endeavor, other countries in Latin America will be asked to take part. He pointed out that researching a variety of aspects, including as fiscal concerns, economic scale, and the function of central banks, would be necessary to create a global currency.

The Economic Struggles in Argentina

Argentina has struggled with high levels of inflation and a lack of access to foreign debt markets for borrowing. The government owes more than $40 billion to the International Monetary Fund alone.

Reactions to News in the Crypto Community

The impending conference has generated discussion among those involved in the cryptocurrency industry, with some suggesting Bitcoin as a potential solution for the two Latin American nations. There is disagreement about the volatility of cryptocurrencies, though, with some arguing that fiat currencies are likewise susceptible to external influences causing their value to decline. In the end, it is still unclear which direction Brazil and Argentina will take as they go with their plans for a common currency.