Latam Insights: Libra Class Action, Brazil’s Bitcoin Wage Bill

Welcome to Latam Insights, a collection of the most relevant economic and crypto news from Latin America over the past week. In this week’s edition, Libra founders face a class action lawsuit, a bitcoin wage bill is introduced in the Brazilian Congress, and a Venezuelan minister claims that 25% of international trade could be settled in US dollars.

Libra’s ‘misleading launch’ faces class action lawsuit
La Libertad Avanza, also known as the Libra token, launched alongside Argentine President Javier Milei, is facing the first class action lawsuit in the United States

Burwick Law recently announced the filing of the lawsuit in the New York Supreme Court, accusing the parties behind the token of “engineering an unfair token launch that misled purchasers and harmed retail investors.”

While the lawsuit cites Chairman Milei’s endorsement as key to giving Libra the appearance of “legitimate and significant investment value,” he is not directly accused of facilitating the alleged scheme. His sister Karina Milei, who is also implicated by third parties, is also not named. However, other parties with public links to Libra, including Kelsier Ventures, KIP Protocol, and Meteora, are named as defendants in the complaint.

Salary Paid in Bitcoin? Bill Introduced in Brazil Could Make It Happen
A new bill has been introduced in Congress to regulate the payment of wages and other labor-related obligations in bitcoin in Brazil. The bill, titled “Regulation on the Payment of Wages, Compensation, and Employee Benefits Using Virtual Assets,” opens the door for legitimate workers to receive a portion of their pay in bitcoin or another virtual asset.

Introduced and sponsored by Luiz Philippe de Orleans e Bragança, the bill will need to be analyzed and passed through the House of Representatives, which will decide whether the project will be forwarded to the Senate.

If passed, workers could receive up to 50% of their wages in bitcoin, provided there is mutual approval from both workers and employers. The value of the assets would have to be certified by an organization authorized by the central bank.

Venezuelan minister says 25% of trade could be conducted outside the US dollar
The international trade market has evolved to open up the possibility of using currencies other than the US dollar. This was the opinion of Venezuelan Foreign Minister Yvan Gil, who commented on the trade policy changes that a multipolar world has brought to international settlements.

In a recent article commemorating 80 years of international relations with Russia, Gil noted that this development was possible thanks to the rise of the BRICS bloc, an organization comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates, and the push for de-dollarization.