Argentine President Alberto Fernández suggested that bitcoin could help the country tackle inflation and admitted the possibility of issuing a CBDC. In an interview with Filo News, the politician said that there are no reasons to oppose the adoption of digital assets.
Answering the question about the possible issuance of a national digital currency and the legalisation of bitcoin, the president said:
“I don’t want to go too far, but there are no reasons to say ‘no’. They say the advantage of cryptocurrencies is that the inflationary effect is largely reduced to zero.”
Inflation is one of Argentina’s most acute problems. The economy Fernández inherited from his predecessor Mauricio Macri in 2019 was in a dire state. According to government data, since December 2019 the Argentine peso has depreciated by 77%.
Fernández noted that bitcoin and other cryptocurrencies are increasingly viewed as a useful inflation hedge, though he himself remains cautious about such an approach:
“This is a global discussion, and I must acknowledge that I approach this topic with caution. My caution stems from the fact that they [cryptocurrencies] are not yet very familiar and understandable to me. Many people have similar concerns, which is why we do not see systematic adoption. But this is something worth considering.”
The head of the Central Bank of Argentina, Miguel Pesce, differs from the president’s view. At a recent conference of the IAEF he stated that bitcoin is not a financial asset and has no value. The official also noted that cryptocurrencies “can be very harmful” to economic stability.
In May, the Argentine Federal Revenue Administration required cryptocurrency exchanges to transmit monthly data on user transactions.
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