This week’s crypto highlight has a triple shakeup: Bolivia is introducing stablecoins and cryptocurrencies into its banking system in an effort to stabilise an economy plagued by inflation and dollar shortages.
Meanwhile, a dormant multisig wallet belonging to LIBRA suddenly shifted $9 million, raising concerns about fund concealment as US courts contemplate freezing assets.
Bolivia embraces crypto and Stablecoins in its financial system
Bolivia’s decision to integrate cryptocurrencies and stablecoins into its financial system marks a significant shift in the country’s economic approach.
Under the new framework, banks will be permitted to hold digital assets and incorporate them into products such as savings accounts and loans, effectively turning these instruments into regulated forms of digital money.
The move reflects an effort to modernise a system weakened by inflation and persistent dollar shortages, while also acknowledging the widespread use of stablecoins by Bolivians as a store of value.
By formalising that behaviour, the government aims to build a clear legal and operational structure for digital currencies.
The initiative also aligns Bolivia with broader regional developments, as several Latin American countries explore similar measures, increasing the pressure to adopt digital assets.
If executed effectively, the reform could position Bolivia as a regional leader in financial digitalisation while offering a more stable, integrated and accessible financial system for households and businesses.
Sudden $9M movement in LIBRA-linked wallet raises legal alarms
After nine months of dormancy, a multisig wallet affiliated with the controversial memecoin LIBRA transferred $9 million.
The rapid action took place just as the United States justice system was considering freezing relevant funds.
The wallet, known as “Milei” on multiple blockchain monitoring sites, sent 69,000 SOL (about $9 million) through several opaque addresses.
According to blockchain analyst Fernando Molina, the transaction pattern shows an attempt to disguise the cash’s destination.
The wallet had been undisturbed since February 15, the day LIBRA failed after a turbulent debut.
This is the first documented outgoing movement from any multisig wallet associated with the project.
The time coincides with an emergency request filed in Manhattan by plaintiffs in a class-action lawsuit to prohibit additional financial transfers.
New income tax exemption sparks interest in Brazil’s crypto market
The approval of a new law exempting all Brazilians earning up to 5,000 reais per month from income tax has sparked debate that goes beyond fiscal policy.
Analysts in the cryptocurrency sector are assessing how the measure could influence investor behaviour and capital flows within the digital asset ecosystem.
While the reform does not alter the taxation of cryptocurrency gains, its indirect effects could be meaningful — particularly for the middle class, which remains one of the main entry points into Brazil’s crypto market.
The exemption may prompt middle-income households to reallocate part of their savings from traditional instruments, such as savings accounts or fixed-income products, toward higher-risk assets offering the possibility of stronger returns.
In that scenario, cryptocurrencies could become a natural destination for investors seeking diversification.
Still, analysts caution that the reform leaves existing tax rules on crypto earnings unchanged.
Any impact will depend on broader factors, including financial literacy, economic confidence and regulatory clarity.
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