DIGITAL

Regulation of cryptocurrencies. On October 21, the Citizen Security Commission of the Latin American and Caribbean Parliament (PARLATINO) met to work on a regulation that will serve as a guide to regulate the use of cryptocurrencies in the region. The objective of the organization is to have a uniform regulatory framework in Latin America, that reaches both users and clients of these virtual assets as well as the States, and that complies with international standards of the Financial Action Task Force (FATF). The initiative could include the use of cryptocurrencies as a payment method for commercial transactions, which could reach the restaurant sector. The medium-term objective of the international entity will be to issue the regulation so that it can be used as a guide by the legislative branches of the region interested in regulating the subject.

In addition to the proposal, during the meeting the countries of the region were urged to issue regulatory frameworks for crypto-assets to ensure legal certainty in their use. They also indicated that these regulations should follow the FATF guidelines, as these represent an international standard that allows greater control over them. In line with this, the president of the Commission, Juan Mario Pais, senator of Argentina for Frente de Todos (ruling party), said that the organization hopes that this proposal “will work as a trigger for measures to contribute to safer trade and avoid damages that may affect the economy of countries and individuals”.

Although the regulation of cryptocurrencies is still incipient in the region, initiatives to adopt them as a payment method are beginning to appear, as is happening in Panama in line with the recent adoption of Bitcoin in El Salvador. Consequently, their adoption could imply the need for businesses, including restaurants, to adapt their payment systems to operate with these assets. Other challenges that the use of these regulations could entail include the possibility of expressing product prices in cryptocurrencies, which would represent a challenge given the wide volatility of these assets.

Next steps

The proposal to regulate the handling of cryptocurrencies in the region will have to be dealt with within the framework of the Commission. In the medium term, after conducting the relevant discussions, the body could approve or dismiss the initiative. It should be noted that, although the laws, resolutions and other documents approved by Parlatino are not binding for the countries that make up the bloc, the documents could be used by legislators as a basis for drafting bills in each of the countries.

Engagement opportunity: On certain occasions, the Parlatino Commission meetings may invite different sectors to participate in the discussion sessions. In this sense, McDonald’s could participate in this instance and make its contributions and consultations regarding the use of cryptocurrencies in the private sector, specifically in restaurants.