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Brazil and Argentina want to start work on issuing a common currency. Sergio Massa, Minister of Economy of Argentina, also stated that the two countries will invite other countries in the region to join this economic integration project in the future.
Brazil and Argentina Spearhead the Joint Currency Issuance Project
The Brazilian and Argentinian ministries will discuss the first steps to issue a joint bilateral currency. According to a statement provided by Argentina’s minister of economy, Sergio Massa, representatives of the two countries will discuss this at the CELAC Summit in Buenos Aires on January 24.
Massa told the Financial Times that discussions would revolve around initial considerations for the issuance of a coin that would be called “sur”, Spanish for south. Masa stated:
There will be a … decision to start studying the necessary parameters for a common currency, covering everything from fiscal issues to the size of the economy and the role of central banks.
Massa warned projects of this kind would take time to bear fruit, citing the example of the Euro, which took 35 years to create before it was finally adopted in the European Union. He explained:
I don’t want to create false expectations… this is the first step of the long road that Latam has to walk.
Invitation to Latam
While the currency will be studied first and is designed to be a bilateral effort, the project could expand to cover more countries in Latam in the long term. “Argentina and Brazil invited the whole region,” Massa explained.
The common currency project for Latam has been gaining momentum over the past year. Brazilian President Luis Inacio Lula Da Silva has mentioned this development before as part of his presidential campaign. At the party’s general meeting in May, Lula Da Silva expressed his intention to participate in the creation of this common currency project, adding that the goal is to reduce the dependence of Latam countries on the US dollar.
In November, Nicolas Maduro, Venezuela’s president, threw his support at the idea, declaring that it would be “amazing.” He also called for the inclusion of cryptocurrencies as part of the 21st century monetary system.
What do you think about issuing a common currency on Latam? Let us know in the comments section below.
Source: Bitcoin.com
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