• Brazil and Argentina are looking to create a common currency, “sur”, to boost regional trade and reduce reliance on the USD.
• Bitcoiners have suggested the two countries adopt Bitcoin (BTC) instead, citing its potential benefits to the region.
• Coinbase CEO Brian Armstrong has voiced his support for the move, highlighting BTC’s potential as a superior long-term bet.

Brazil and Argentina have recently announced their intention to work together to create a common currency, dubbed the “sur”, which would operate in parallel with the Brazilian real and Argentine peso. The move is intended to boost regional trade and reduce reliance on the US dollar.

However, some members of the Bitcoin community have suggested that the two countries adopt Bitcoin (BTC) as legal tender instead. They have argued that the digital currency could offer numerous advantages over fiat, such as greater financial freedom, lower transaction fees, and improved security. Gabor Gurbacs, a Strategy Advisor at VanEck, commented that “the answer isn’t a new fiat currency”.

Brian Armstrong, the CEO of Coinbase, has supported the move, tweeting that “moving to Bitcoin” would “probably be the right long-term bet”. He highlighted the Lightning Network, a second-layer payment protocol designed to help scale the Bitcoin network, as a potential solution to any underlying network concerns. Additionally, some Bitcoiners have argued that the volatility of BTC is overstated, particularly when compared to the hyperinflation-hit LATAM fiats.

The suggestion to adopt Bitcoin has been met with both support and criticism. However, many have noted that crypto adoption is rapidly increasing in both Brazil and Argentina, while their respective fiats continue to suffer. It remains to be seen whether the two countries will follow the advice of Bitcoiners and move towards adopting BTC as a legal tender.