Latin America’s crypto landscape saw significant developments this week: Paraguay announced plans to mine Bitcoin using seized ASIC hardware, Colombia’s central bank completed a draft law for the crypto industry, and Argentine neobank Uala raised $195 million at a valuation of $3.2 billion. Here are the details.
Paraguay to Mine Bitcoin With Seized ASICs
Paraguay is joining the ranks of countries like El Salvador and Bhutan by leveraging confiscated mining equipment. The state-owned power utility ANDE has partnered with Morphware, an AI and cryptocurrency mining company, to establish a Bitcoin mining operation using miners seized during illegal energy theft crackdowns. Morphware, already operating in Paraguay using hydroelectric power from the Itaipu Dam, signed a memorandum of understanding to “explore the role of Bitcoin mining as a national-level opportunity within Paraguay’s broader energy and digital infrastructure landscape.” This initiative could legalize previously illicit mining hardware and generate new revenue for the country.
Colombia’s Central Bank Finalizes Digital Assets Law Draft
Colombia is moving to bring regulatory clarity to its virtual asset sector, which currently operates in a gray area. The central bank has finalized a draft law regulating cryptocurrency activities, focusing on recognizing the innovative potential of digital assets for the broader economy. Andres Murcia, Deputy Manager of Monetary and International Investments, stated that the institution initially took a defensive stance but evolved to a more progressive view, acknowledging that digital assets are innovative and can benefit Colombia. The final draft is expected to be submitted to Congress in the coming months.
Argentine Neobank Uala Raises $195M for Latin American Expansion
Uala, an Argentina-based neobank, closed a successful funding round, becoming one of the largest fintech companies in the region. Serving over 11 million users across Argentina, Colombia, and Mexico, Uala raised $195 million in a round led by Allianz X (the investment arm of Allianz Group), with participation from Stone Ridge Holdings Group, Tencent, TABLE Holdings, Soros Fund Management LLC, and D1 Capital Partners. The round values Uala at $3.2 billion, signaling growing investor confidence. The company plans to use the funds to expand its Latin American presence, including launching more digital asset-related services.
Overall, Latin America is increasingly embracing cryptocurrency and blockchain technology at both policy and commercial levels. Paraguay’s innovative mining approach, Colombia’s regulatory progress, and Uala’s capital raise all point to a positive trajectory for digital assets in the region.