Torrevieja Eyes Becoming Europe's First Crypto City Amid 'Crypto Caves' Trend in Argentina and NBA Lawsuit
Summary:
Torrevieja, a city in Spain, seeks to become Europe's first crypto-friendly city by digitizing local commerce using cryptocurrencies. Meanwhile, in Argentina, secretive peer-to-peer exchanges known as "crypto caves" are aiding locals to escape high inflation by swapping pesos for stablecoins. Elsewhere, former SEC official John Reed Stark is supporting a class action lawsuit against the NBA for its collaboration with the now defunct Voyager Digital crypto exchange.
A Spanish metropolis aspires to be the pioneer city in Europe where cryptocurrencies are widely accepted. Meanwhile, Argentine citizens are turning to clandestine marketplaces, commonly referred to as "crypto caves," to convert their pesos into more stable forms of digital currency. On a separate note, an ex-US SEC official has lent his support to an ongoing class action lawsuit against the NBA.
In Spain, Torrevieja - a popular tourist destination located in the province of Alicante and home to about 82,000 residents - is projecting itself as "Europe's first crypto-friendly city." This follows their plans to allow local businesses to transact using cryptocurrencies. The drive towards this digital transformation of commerce will be supported by local government and businesses implementing blockchain tech.
The initial stage will aim to encourage trade by enabling customers to use cryptocurrencies and other digital assets to pay for goods and services. Alongside this, the city also plans to restore natural environments and stimulate job creation and funding opportunities within the tech industry.
City commerce representative Rosario Martínez Chazarra expressed her optimism that these strategies will stimulate interest among crypto holders. She also revealed that the University of Alicante will be offering specialised digital payment courses for local companies.
In contrast, a high inflation rate has provoked Argentina's population to turn to under-the-table exchanges or 'crypto caves' to purchase stable US dollar coins as an alternative to the volatile Argentine peso (ARS). These covert, peer-to-peer marketplaces offer improved rates than the official exchange by trading in USD-pegged stablecoins like Tether (USDT).
Crypto caves trace their roots back to 'financial caves'. These were traditional exchange centres that retreated to the shadows following restrictive currency controls introduced in Argentina during the 1980s. They continue to trade in the 'blue dollar,' an informal dollar rate. Despite some of these marketplace operators being interrogated or raided by authorities, they enjoy a relatively untarnished reputation amongst locals. As the country wrestles with an inflation rate that peaked at 211.4% in 2023, Argentine citizens have turned to these crypto caves as safe havens to offload devalued pesos.
On another note, John Reed Stark - the former head of internet enforcement at the SEC - has sympathised with digital asset holders in their legal battle with the NBA. Stark publicly condemned the NBA for its collaboration with the now collapsed enterprise, Voyager Digital crypto exchange. The digital exchange platform, like others, failed in 2022 during a market downturn. It later agreed to a $1.65 billion settlement with the Federal Trade Commission in November 2023.
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Published At
2/12/2024 4:15:48 PM
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