August 13, 2021 07:57 UTC
August 13, 2021 07:57 UTC
The President of Argentina was friendly to the concept of central bank digital currency, but the governor of the country’s central bank rejected the concept.
Argentine President Alberto Fernandez has expressed support for digital assets and declared that there is no reason to ban the growing asset class.
In an interview with the local media Caja Negra on August 12, Fernandez asked whether he would consider exploring the central bank digital currency (CBDC), or whether he would recognize Bitcoin as legal tender as El Salvador did earlier. System year.
“I don’t want to go too far physically […] However, there is no reason to say’no’,” Fernando declared, adding: “They say the advantage is that the inflation result is basically invalid. “
Inflation is a shaping problem faced by the government of former Argentine President bourgeois Mauricio Macri. Government data shows that after Macri left the workplace in 2019, the value of 100 Argentine pesos is equivalent to the current 661 pesos.
Despite Argentina’s strict currency control, the current president pointed out that Bitcoin is increasingly viewed as a hedge against inflation in the wider international economy. However, Fernandez also cautiously pointed out that for the cryptocurrency industry, it is still a very bad time:
“Because of how strange it is, be careful, because you need to know how this wealth is realized. Many people in the world have these considerations, which is why the project or system is still not expanding. [more than it has]. However, this is one thing and needs to be considered. “
Although the president is open to exploring digital assets, Argentine central bank governor Miguel Pez appears to be threatening to crack down on the business.
Pesce delivered a speech at the Digital Finance Forum of the Argentine Government Institute of Finance on August 10. His goal is cryptocurrency, describing digital assets as a threat to economic stability and heralding the introduction of stricter laws in this area.
During the event, Pesce announced that BTC had failed to price investors outside of the short-term hype cycle. The governor of the central bank also likened Bitcoin to a commodity, and finally, the country’s National Securities Commission outlined that Bitcoin is “not a financial asset”.
Pesce stated that he intends to “regulate the intersection of Bitcoin, payment systems and trading markets,” and warned that this cryptocurrency “may cause serious damage to domestic currency stability.”
In order to control the stage, financial organizations need to rank “prevent low-level investors” from participating in encrypted assets. Pesce said:
“We are worried that (cryptocurrency) will be used to create illegitimate profits for unsuspecting people.”
Pesce also rejected Argentina’s proposal to explore a financial organization’s digital currency (CBDC).
In May, it was reported that as voters wanted to take advantage of low-cost electricity and soaring encryption costs, retail cryptocurrency mining was booming in Argentina. In the same month, the Central Bank reiterated its warning to Argentines on the risks associated with crypto assets.
Last month, Canadian mining company Bitfarms proposed a growth roadmap for Argentina, estimating that its upcoming Argentine factory could reduce its production price by 45%.