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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Tuesday, June 15, 2021

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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Tuesday, June 15, 2021 LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Tuesday, June 15, 2021 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group POLITICAL Devry Boughner Vorwerk Is Embracing Bitcoin Nicaraguan Agents Chief Corporate Affairs Officer, Grubhub Arrest Another Joyce Chang Global Head of Research, the Right Move for El Opposition Figure JPMorgan Chase & Co. Nicaraguan police have arrested Paula Cifuentes another opposition figure, Víctor Director of Economic & Fiscal Affairs, Salvador’s Economy? Hugo Tinoco, bringing to 13 the Latin America & Canada, Philip Morris International number of opposition members Marlene Fernández arrested in Nicaragua since the Corporate Vice President for beginning of June. The broad Government Relations, crackdown comes ahead of Arcos Dorados (McDonald’s) Nicaragua’s presidential election Peter Hakim in November. President Emeritus, Inter-American Dialogue Page 2 Donna Hrinak Senior VP, Corporate Affairs, ECONOMIC Royal Caribbean Group Jon E. Huenemann Brazil Eying Council Member, GLG Inc. Power Rationing James R. Jones Salvadoran President Nayib Bukele has said cryptocurrency will “generate jobs and help pro- Amid Drought Chairman, vide financial inclusion to thousands outside the formal economy.” // File Photo: Salvadoran Monarch Global Strategies Government. Brazil’s government is reportedly preparing a temporary decree that Craig A. Kelly El Salvador’s ruling party-controlled Legislative Assembly Senior Director, Americas could lead to electricity rationing Int’l Gov’t Relations, Exxon Mobil on June 8 passed a measure proposed by President Nayib amid a severe drought. Barbara Kotschwar Bukele to designate Bitcoin a legal tender, making the Cen- Page 3 Executive Director, Visa Economic Empowerment Institute Q tral American nation the first in the world to do so. What are John Maisto Bukele’s goals in making Bitcoin one of El Salvador’s official currencies, POLITICAL Director, U.S. Education Finance Group and what are the major benefits and drawbacks? What implications does Pinzón Tapped Nicolás Mariscal the move have on remittance flows, anti-money laundering efforts and as Colombia’s Chairman, the U.S. dollar, which is El Salvador’s main currency? What potential con- Grupo Marhnos Envoy to U.S. sequences could formalizing the cryptocurrency have on the country’s Thomas F. McLarty III Colombian President Iván Duque Chairman, program with the International Monetary Fund? What does the measure McLarty Associates tapped Juan Carlos Pinzón as the country’s ambassador to the Beatrice Rangel mean for businesses operating in El Salvador? Director, United States. Pinzón previously AMLA Consulting LLC occupied that post from 2015 to Jaana Remes Julia Yansura, program manager for Latin America and the 2017. Partner, Caribbean at Global Financial Integrity: “El Salvador’s GDP Page 2 McKinsey Global Institute Ernesto Revilla contracted nearly 9 percent in 2020 during the Covid-19 crisis, Head of Latin American and full recovery is not expected until 2023. Meanwhile, exter- Economics, Citi A Gustavo Roosen nal debt is rising. In this difficult economic context, the country is trying President, to find solutions. President Bukele has said Bitcoin will promote financial IESA inclusion, facilitate remittances and attract investment to the country. Andrés Rozental President, Rozental & Some of these make more sense than others. It’s unlikely that Bitcoin, Asociados which is complex and volatile, will be a financial inclusion pathway for Shelly Shetty Managing Director, Sovereigns average Salvadorans who find existing options with banking, community Fitch Ratings credit unions or mobile money too complicated or costly. Moreover, for migrants sending remittances, Bitcoin is too complicated to be attractive. I do think the move will attract investment to El Salvador, but not without significant risks. While El Salvador’s security situation has improved Pinzón // File Photo: White House. Continued on page 3 COPYRIGHT © 2021, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Tuesday, June 15, 2021 POLITICAL NEWS usurpers share in common is their allegiance NEWS BRIEFS to the government of the United States of Nicaraguan Police America and the fact that they have directly Colombia’s Duque or through their respective NGOs, received Taps Pinzón as Arrest Another millions of dollars in U.S. taxpayer money through USAID, NED, IRI and other agencies, Ambassador to U.S. Opposition Politician aimed at overthrowing the elected govern- Colombian President Iván Duque on Monday ment of President Comandante Daniel Ortega tapped Juan Carlos Pinzón, a former defense Police in Nicaragua have arrested another Saavedra,” Nicaragua’s government said in a minister, to be the country’s new ambassador opposition politician, bringing to 13 the number statement. The U.S. government has criticized to the United States, the Associated Press of opposition members detained since the the crackdown. “The United States condemns reported. Pinzón, 49, is expected to take over beginning of June in an expanding crackdown this ongoing campaign of terror in the most the embassy in August. He had previously held on foes of President Daniel Ortega, the Asso- unequivocal terms and considers President the post between 2015 and 2017, when Colom- ciated Press reported Monday. In the latest Ortega, Vice President Murillo, and those bia’s government signed a peace deal with the arrest, 10 agents in plainclothes and wearing complicit in these actions responsible” for the Revolutionary Armed Forces of Colombia, or hoods seized Víctor Hugo Tinoco, the leader of safety of those arrested, a State Department FARC. Pinzón later became a critic of the peace political movement Unamos and a former Nic- spokesperson told The Wall Street Journal. agreement, saying its terms were too lenient on araguan foreign minister and ambassador to the top commanders of the former rebel group, the United Nations, the wire service reported. the AP reported. Tinoco was detained late Sunday at a shop- Authorities in Costa ping mall. Tinoco’s arrest brought to six the Rica Make Arrests in number of opposition members detained over CABEI Head Expresses the weekend. Another Unamos party leader, Large Graft Probe Suyen Barahona, was seized earlier on Sunday. Support for El Salvador’s Unamos activist Tamara Dávila was also Costa Rican authorities on Monday carried out Adoption of Bitcoin arrested over the weekend, as were ex-Sand- dozens of searches and arrests in connection Dante Mossi, the head of the Central American inista dissidents Dora María Téllez and Hugo with a massive public corruption investigation Bank for Economic Integration, or CABEI, on Torres and another opposition member, Ana related to the awarding of road construction Monday said the bank will provide technical Margarita Vijil. Former Sandinistas who have and maintenance contracts, the Associated assistance to El Salvador for it to implement criticized Ortega for nepotism and autocratic Press reported. The probe is one of the most Bitcoin as legal tender, even though it still is- ways as well as continual re-elections formed impactful public corruption investigations in sues debt only in U.S. dollars, Reuters reported. Unamos. Nicaraguan police said they arrested the country, according to the director of the El Salvador last week passed a law to formalize the opposition members on charges related to Judicial Investigation Organization, Walter Bitcoin as the country’s currency alongside the a law that the ruling-party dominated National Espinoza. The case allegedly involves a series dollar, the first country in the world to do so. Assembly passed in December that gives of bribes, from cars to properties, cash and Mossi said the measure would give Salvador- Ortega’s government the power to unilaterally personals favors, by a group of private firms ans many opportunities, including reducing the declare citizens “terrorists” and “traitors to the to public officials in exchange for securing costs of remittances. homeland” and prohibit them from running as government contracts, Espinoza said, the AP candidates, the AP reported. The law also al- reported. He added that the scheme caused lows for punishing people “who lead or finance a $127 million deficit in the budget for road a coup ... encourage foreign interference, ask works from 2018 to 2020, Reuters reported. Brazil’s GPA Considering for military intervention ... propose or plan Authorities executed 57 searches, 14 of them Spinoff of Colombia’s economic blockades, applaud and champion of public institutions, including the offices Almacenes Éxito: Report the imposition of sanctions against Nicaragua of the president. Eighteen officials and 11 or its citizens.” The crackdown comes ahead businessmen were arrested, and Espinoza said Brazil-based food retailer GPA is considering a of Nicaragua’s presidential election, which is dozens more were under investigation. One of spinoff of its Almacenes Éxito unit in Colom- scheduled for Nov. 7. Ortega, who has been in the judicial orders was for the arrest of one of bia, of which it owns nearly 97 percent, Reuters office since 2007, is seeking to extend his rule. President Carlos Alvarado’s closest advisors, reported Monday, citing two unnamed sources In a statement Monday, Nicaragua’s govern- Camilo Saldarriaga, who resigned from his with knowledge of the matter. GPA sharehold- ment characterized the arrests as legitimate. post on Monday, Reuters reported. Saldarriaga, ers
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