8.1 C
Amsterdam
28 March 2024
PumpMoonshot
Image default
Bitcoin

The president of Argentina opens to Bitcoin

Argentina’s President Alberto Fernandez recently hinted that the country is open to the idea of ​​adopting the world’s largest cryptocurrency , Bitcoin , and introducing a Central Bank Digital Currency issued by the central bank.

Fascinated by initiatives in favor of the crypto world, such as the recognition of Bitcoin as legal currency in El Salvador or the issuance of the country’s first batch of CBDC by the Bank of Jamaica , President Fernandez supports modern digital assets by trying to bring innovation in Argentina.

During an interview with a local media outlet, he was optimistic about the use of cryptocurrencies, also adding that there is no reason to slow or reject the evolution of the emerging class of digital assets.

In addition, he also added that the inflationary effect in the South American country could be nullified thanks to the benefits derived from the cryptocurrency.

Inflation is one of the most sensitive issues in Argentine politics. Fernandez inherited the second most “miserable” economy in the world, according to Bloomberg’s World Misery Index , from former president and businessman Mauricio Macri.

According to the country’s official inflation statistics, Mex $ 100 at the start of Macri’s tenure would equate to Mex $ 661 today.

Not only that, the data suggests that prices in general increased by 25.3% in the first half of 2021 alone.

Bitcoin and a CBDC for Argentina

Despite Argentina’s tight currency controls, the current president has a broader, more modern and digital vision. In fact, he noted the growing perception of Bitcoin as a hedge against inflation in the wider global economy.

However, highlighting concerns about Bitcoin’s price volatility, he stated that cryptocurrencies are a social-economic issue that needs to be approached with a good deal of caution.

Although there is an openness by the president to the exploration of digital assets, the head of the Argentine central bank, Miguel Pesce , appears to be threatening a crackdown on the sector.

On August 10, at the Digital Finance Forum organized by the Argentine Institute of Finance Executives (IAEF) , Pesce hinted at some sort of upcoming regulation for bitcoin transactions and also pointed out that the central bank was working to find effective ways to warn novice investors of the dangers behind cryptocurrencies.

For Pesce, Bitcoin is not a financial asset because it is not backed by any assets and cannot guarantee a stable return, further believing that there could be a very unfair effect if this money from cryptocurrencies were to mix with the traditional foreign exchange market.

Pesce also rejected President Fernandez’s suggestion to adopt a central bank digital currency (CBDC).

The aim of the central bank is to prevent poorly prepared or ill-informed investors from committing cryptocurrencies, through precise regulation.

The president of Banco Central de la República Argentina (BCRA) stated precisely with regard to this type of danger:

“We are concerned that (cryptocurrencies) are being used to generate undue profits on unsuspecting people.”

Interest in cryptocurrencies has increased significantly in Argentina in recent years, mainly because it can be used as an indirect exposure to the US dollar, which protects investors in the country from devaluing the local currency, the Argentine peso.

In addition to plain Bitcoin, stablecoins like DAI are also popular with Argentine traders.

News Source

Related posts

Bitcoin’s Skyrocketing Leverage Suggests Crypto Market Could Be Overheated: IntoTheBlock

PumpMoonshot

Stablecoin Metric Indicates Bitcoin’s Price will Surge

PumpMoonshot

State of Bitcoin & Stablecoins in The Crypto Crash 2022

PumpMoonshot
Verified by MonsterInsights