Carlos Maria De Los Santos: “The digital peso will reduce citizens’ investment in crypto assets”

The former Argentine banker believes that the launch of a digital state currency will improve the Argentine economy, prevent tax evasion and reduce investment in crypto assets.

Productive Inclusion Foundation President Carlos Maria De Los Santos has unveiled a plan called the Argentine Digital Peso. The ex-banker claims that the launch of the digital peso will not require large expenditures from the state, however, if necessary, law enforcement agencies will be able to check transactions made by citizens.

The introduction of CBDC will reduce the number of cases of tax evasion, which is now 50%, annually increasing the economic surplus due to taxes paid, the banker believes. Recently, the Argentine Revenue Service (AFIP) expressed concern that the owners of crypto assets withheld from the tax authorities $ 1 billion in income.

Santos is convinced that the introduction of the digital peso will help lower taxes for citizens and raise interest rates for savers. These advantages of the digital peso will dampen public interest in investing in high-risk assets, including cryptocurrencies, the former banker believes. The amount of capital that leaves Argentina for international markets or circulates outside the banking system will go inside the country, the author of the plan believes.

According to recent data from the analytical company Chainalysis, Argentina is one of the leading countries in the use of stablecoins. This is due to the fact that in conditions of high inflation, the inhabitants of this state are trying to save their savings with the help of stable cryptocurrencies.

However, former head of the BitMEX exchange Arthur Hayes believes that the launch of central bank digital currencies is only beneficial for governments that want to know what citizens are spending money on.