Argentina’s President, Alberto Fernandez, is open to adopting Bitcoin as a legal tender to combat inflation.
Argentina’s President, Alberto Fernandez, said last week that he was open to using Bitcoin as legal cash to combat inflation. The remarks were made during a Filo News local television interview.
During the conversation, Fernandez expressed interest in Bitcoin becoming legal tender and playing a larger role in the economy of Argentina.
“I don’t want to go too far out on a limb […] but there is no reason to say no,” the president remarked when asked if Argentina would follow El Salvador’s lead in adopting Bitcoin.
While both Argentina and El Salvador have high inflation, Argentina does not accept the US dollar as legal cash and has strict currency exchange controls, creating a black market for foreign and digital currencies.
According to Trading Economics, Argentina is now ranked eighth in the world inflation index, with an inflation rate of 51.8 percent.
In line with this data, Bloomberg ranked Argentina as the world’s second most miserable economy in 2020. The country’s requirement for a hard store of value, such as Bitcoin, is obvious.
When questioned about cryptocurrencies and whether his government was looking into them, Fernandez responded that there was a large debate regarding their role not only in Argentina but around the world.
THE CENTRAL BANK OVERVIEW
While Argentina’s president is in favour of Bitcoin, representatives from the country’s central bank have expressed reservations.
On August 11, President Miguel Pesce of Argentina’s Central Bank announced that the institution was interested in regulating the junction of bitcoin and traditional payment systems.
Pesce went on to say that if money from cryptocurrencies mixed with money from established exchange markets, it would be harmful to the system.
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