IMG-LOGO

Victory of President-Elect ‘Lula’ in Brazil Might Bring the Rise of a Common Currency for Latam

News Feed - 2022-11-01 06:11:49

Victory of President-Elect "Lula" in Brazil Might Bring the Rise of a Common Currency for Latam


The victory President-Elect Luis Inacio Lula Da Silva obtained on Oct. 30 over the incumbent Jair Bolsonaro in Brazil might open the gates for the proposal of a single currency for the countries of Latam. Lula announced this as part of his campaign, preaching the utility of a common currency as a way of fighting inflation and dependence on the U.S. dollar. Brazil’s Lula Might Spearhead Proposal of Single Currency in Latam


The tight electoral victory that now-President-Elect Lula Da Silva has obtained on Oct. 30 might bring the rise of a new common currency for Latam, judging by the politician’s statements. The left-wing politician, a member of the Workers Party in Brazil, had commented about the need for a single currency on the continent as part of his presidential campaign, explaining the possible opportunities that such a change might bring.


Lula commented on the subject in a rally celebrated on Aug. 30, stating: We are going to restore our relationship with Latin America. God willing, we will create a Latin American currency.


According to Lula’s collaborators, this currency might be called Sur (Spanish for “South”) and could be capitalized based on the trading volumes of the countries on the continent. “We don’t have to depend on the dollar,” Lula said at the time, clarifying that the objective of such a currency would be to undermine dependence on the U.S. dollar, the influence of which is said to have caused many troubles and economic imbalances in countries like Venezuela and Argentina. International Circumstances and More Currency Projects


The geopolitical stances of the other governments in Latam might help Lula to make this proposal a reality, as the continent sees the majority of its governments leaning left in their policy outlooks.


During the inauguration of Colombian president Gustavo Petro on Aug. 7, Chilean President Gabriel Boric commented on the issue, being open to the proposal, but also noting that much has to be done before such a measure is taken. He pointed out that multi-country integration organizations like the Andean Community and the Celac (Community of Latin American and Caribbean States) could also be revitalized for this effect.


At a worldwide level, there are other proposals looking to replace the dollar as a trading and reserve currency. In particular, Russian president Vladimir Putin announced a BRICS project to create a single currency based on the basket of currencies of countries in the organization at the 14th BRICS Summit in July. Also, there are reports on Russia and China being involved in the development of a gold-backed currency. Tags in this story boric, Brazil, Chile, colombia, common currency, Dollar, latam, lula da silva, Petro, South, Sur


What do you think about the possibility of the issuance of a common currency for Latam? Tell us in the comments section below. Sergio Goschenko


Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Nigeria"s Central Bank Doubles Down on Plans to Introduce Newly Designed Naira Banknotes ECONOMICS | 1 day ago Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar ECONOMICS | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Wagner Vilas / Shutterstock.com Previous articleVitalik Buterin Says Crypto Is a ‘Better Bet’ Than ‘Incredibly Inconvenient’ Gold Next articleZoidPay Announces the Launch of ZETA, the First on-Demand Metaverse 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 NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher