The head of Argentina’s central bank revealed that the bank is closely observing cryptocurrencies. He has no issue with those that choose to accept them for payments. He criticized digital currencies for their volatility, lack of legal tender status, and being prone to cyber-attacks as some of the reasons they can’t be used as currencies in the South American country. Countries across the world are actively working on crypto regulations.
The central bank’s head says there is a need to educate and protect investors.
The president of the Central Bank of Argentina (BCRA), Miguel Pesce, was speaking at an event organized by a local fintech organization. He told the attendees that the central bank is aware it needs to do more to educate and protect investors. “We believe that we have to do [the] work of education, explaining to the population what these instruments are about to avoid generating situations in which, due to misinformation, someone makes an investment over which he has no control,” he remarked.
Argentina’s central bank says cryptocurrencies are not meant to be an investment instrument.
Pesce also criticized the term “cryptocurrency” as crypto “refers to something hidden, opaque.” This is in line with the BSV blockchain’s position that Bitcoin, as envisioned by the original Satoshi Nakamoto white paper, is traceable on the immutable and transparent ledger. Elas captured this in their submission to the Australian Senate, stating, “Importantly, Bitcoin does not seek to be recognized as a ‘cryptocurrency’ nor does it seek to represent itself as a tool for anonymity or crime. It is a utility ledger providing a traceable and utile cash system which is applicable to a vast number of business cases and opportunities.” The Argentinian central bank head further stated that digital currencies were meant to be used as currencies and not an investment instrument.