The highlights of the week in terms of crypto in Latin America are that the US is raising tariffs for Brazil, and the trickle-down effect on how it influences investor behaviour around crypto, as increased economic frictions increase demand for cryptocurrencies like Bitcoin and stablecoins.
Bolivia, on the other hand, is attempting to address its present severe economic situation by increasing the use of cryptoassets in the country.
Just this week, the southern nation reached an agreement with El Salvador, a crypto pioneer in Latin America.
US tariffs might have a greater impact on Brazil’s crypto sector
On July 30th, President Donald Trump issued an executive order boosting taxes on Brazilian goods from 10% to 50%, using the International Emergency Economic Powers Act of 1977.
The bill will take effect on August 6, 2025. According to the administration, this decision is in response to recent political developments in Brazil, such as former President Jair Bolsonaro’s trial and Federal Supreme Court rulings, which the US government claims threaten national security, economic interests, and freedom of expression.
The tariff increase is projected to affect vital Brazilian businesses such as agriculture, aviation, and orange juice production.
Analysts predict up to 120,000 job losses and a 2.7% GDP decrease in regions such as São Paulo.
Despite Brazil’s efforts to establish diplomatic relations with the US since May, Washington has yet to respond officially.
This lack of engagement raises the possibility of an expanding trade war between the two countries.
This policy’s ramifications may also affect the Bitcoin sector. As market uncertainty increases, investors may gravitate toward decentralised assets such as Bitcoin, while volatility in the Brazilian real may fuel demand for stablecoins.
Crypto ventures tied to Brazilian exports, such as tokenised commodities, may suffer from diminishing markets.
Furthermore, if the United States increases its inspection of Brazil’s digital and regulatory environment, particularly social media and finance platforms such as PIX, the larger crypto ecosystem may face new legal and operational issues.
Bolivia and El Salvador sign crypto agreement to develop digital finance framework
Bolivia has inked a historic bilateral agreement with El Salvador to promote cryptocurrency adoption, taking a significant step toward modernising the banking system.
The agreement, which is intended to boost Bolivia’s struggling economy and promote financial inclusion, follows in the footsteps of El Salvador, the first country in the world to make Bitcoin legal tender.
The deal marks a strategic shift for Bolivia, which is in the midst of an economic crisis and running at historically low international reserves.
Through digital assets, the country is seeking alternatives to traditional monetary systems to help stabilise its economy and increase access to financial resources.
Méliuz appoints Bitcoin strategist to lead US expansion
Méliuz (B3: CASH3), Latin America’s first corporation to embrace a Bitcoin treasury strategy, has named Mason Foard as its new Head of Bitcoin Strategy.
Foard, an American crypto expert, has extensive experience in corporate finance, capital markets, and Bitcoin-structured tactics.
He co-founded one of X’s largest global groups focusing on corporate Bitcoin treasuries and currently works with MSTR True North, researching companies that deploy Bitcoin-based equity strategies.
Foard is well-known for integrating Bitcoin into traditional finance via new treasury models and fixed-income products backed by the digital asset.
Méliuz believes his method is a good fit for the organisation’s long-term objective. In his new job, Foard will spearhead efforts to expand Méliuz’s institutional footprint in the United States, attract global investors, and create financial products centred on Bitcoin accumulation.
His appointment is seen as a critical step in raising the company’s international profile outside Brazil.
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