The President of Argentina Alberto Fernandez has indicated support for digital currencies like bitcoin, asserting there is no reason to push back against the emerging asset class. Central banks across countries are actively exploring digital currencies. Earlier, El Salvador made a historic move when it passed a bill to authorize bitcoin as an optional legal tender. Countries like the USA, Russia, China, and Canada are exploring CBDCs.
Argentina’s President is supportive of digital currencies.
In an interview with a local media outlet, Caja Negra, president of Argentina, responded to a question about whether he would consider exploring a central bank digital currency (CBDC) or even recognize Bitcoin as legal tender as El Salvador did earlier this year. “I don’t want to go too far out on a limb […], but there is no reason to say no.” Fernando further stated, “They say the advantage is that the inflationary effect is largely nullified.” Inflation was a defining issue for the administration of Argentina’s previous President, Mauricio Macri.
“It is still very early days for the cryptocurrency sector.”
Despite Argentina’s tight currency controls, the current President of Argentina noted increasing perceptions of Bitcoin as a hedge against inflation in the broader global economy. However, Fernandez also cautiously noted that it is still very early days for the cryptocurrency sector. He stated, “There is caution because of how unfamiliar it is, and because it is hard to understand how this fortune materializes. Many people in the world have these concerns, and that is why the project, or the system, has not yet expanded [more than it has]. But it is something to consider.” Despite the President’s supportive approach towards the crypto sector, the country’s central bank has different opinions. The head of Argentina’s central bank, Miguel Pesce, characterized digital assets as a threat to economic stability and foreshadowed tighter sector regulations.