Argentina’s president agrees to make bitcoin legal tender and support the creation of a state digital currency. Argentina’s central bank is strongly opposed.
Argentine President Alberto Fernandez has announced his support for cryptocurrencies and believes that the emerging asset class cannot be crowded out. In an interview with local media outlet Caja Negra, Fernandez answered the question of whether he would consider exploring the Central Bank’s digital currency (CBDC) or recognizing bitcoin as legal tender. as El Salvador did.
The current president noted the growing perception of Bitcoin as a hedge against inflation in the global economy as a whole, adding:
“I don’t want to go too far … but there is no reason to refuse. The advantage of bitcoin is that the inflationary effect is largely canceled out. ”
For its part, the Central Bank of Argentina (BCRA) wants to avoid any link between bitcoin and the foreign exchange market.
“We are going to regulate all possible intersections of bitcoin with the payment system and the foreign exchange market,” – said the president of the bank Miguel Ángel Pesce (Miguel Ángel Pesce).
In his opinion, bitcoin cannot be a financial asset and cannot be profitable, so it should be excluded from new solutions and not considered as a means of payment. Despite the president’s openness to exploring digital assets, the head of Argentina’s central bank appears to be threatening to crack down on the industry. Pesce dismissed speculation that Argentina would create the digital currency of the Central Bank.
“We intend to leave the role of the only regulator for the Central Bank. Individuals are now involved in this function. They distribute the system, develop technology platforms and control the execution of transactions. ”
Determining the legal status of Bitcoin and the prospects for using BTC in the country’s economy have already been considered by the previous administration of Argentina. However, the matter did not progress further than discussion and mutual claims of the regulator and the government.
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