Latam Insights: Milei Dissolves Libra's Investigation, Colombian CBDC Comes out of Stealth

2025-05-25 19:12:51

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this week’s edition, Argentine President Javier Milei dissolves the group investigating Libra, Colombia pilots CBDC on Cosmos, and the largest bank in Guatemala taps crypto for remittances.

Milei Dissolves Argentine Task Force Investigating Alleged Libra Market Manipulation

Established via Decree 114/2025 in February, the UTI was tasked with gathering evidence on LIBRA’s volatility after Milei’s February social media post endorsing the token preceded its price surge and collapse. The unit coordinated with agencies, including the Financial Information Unit, Central Bank, and Anti-Corruption Office, submitting findings to the Office of the Prosecutor General.

The latest Decree issued on May 19, signed by Milei and Justice Minister Mariano Cúneo Libarona, stated the UTI “fulfilled its functions” and was no longer necessary. The scandal erupted when reports revealed wallets tied to senior figures sold LIBRA tokens after Milei’s post, prompting investor complaints of market manipulation.

Opposition lawmakers accused Milei of blurring public office and private interests, citing his 2023 campaign events, during which he allegedly collected $20,000 in undocumented cash from business leaders during private dinners organized with his sister, Karina Milei. While the UTI concluded its work, a congressional investigative committee formed in April has yet to begin proceedings.

Report: Colombia Running CBDC Pilot on Cosmos

Colombia would be the latest country in Latam to experiment with the creation of a central bank digital currency (CBDC). At an interview with The Street, Interchain Labs co-CEO Maghnus Mareneck revealed that they were working with a consortium of banks and the Colombian government in a joint pilot of this still unnamed currency.

While Mareneck was scant on the details of the CBDC, he did reveal that the currency would target a cross-border payments use case and would run on top of Cosmos using IBC Eureka.

Mareneck reinforced the relevance of leveraging Cosmos and IBC Eureka for this project, as they are part of a technology stack that can be harnessed privately by the Colombian government without relying on public infrastructure.

Largest Bank in Guatemala Turns to Crypto for Remittances

Banco Industrial, the largest bank in Guatemala, has announced the integration of Sukupay, a crypto-based cross-border payment provider, to power its remittance services. Using Sukupay, Banco Industrial now offers its customers remittances at a flat fee of $0.99, allowing them to receive these funds in their bank accounts. Michel Caputi, Head of the Strategic Alliances Division at Banco Industrial, highlighted the advantages of crypto for this use case. “This is a modern solution to a legacy problem — and we’re proud to lead the way in Latin America,” he stated. Sukupay claims this is the first time a crypto-native protocol “has gone live at this depth inside a top-tier Latin American retail bank,” becoming the de facto option for remittances.