Argentina’s President Open to Cryptocurrencies

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El Salvador’s latest move to openly adopt cryptocurrencies instead of fiat money has caused quite a stir globally. Banks are outraged, and major governments are either supporting or openly against El Salvador’s controversial decision. It seems that South American countries stick together, as Argentina is the latest after Paraguay considering making cryptos a legal tender.

That was what Argentina’s president, Alberto Fernandez, recently said to the press. While Bitcoin and the bunch aren’t legally accepted in Argentina just yet, the president is open to such a move soon. There’s a major discussion about the use of cryptocurrencies in Argentina in recent weeks and months, although the government is trying to treat things with caution.

Crypto Adoption in Argentina Soon?

Argentina is one of the worst financially standing South American countries. It has been on the brink of bankruptcy more times than one could count, and major financial organizations aren’t interested to cooperate. The current Argentinian president, Alberto Fernandez, has recently expressed his opinion on cryptocurrencies, opting to adopt them instead of rejecting.

Of course, that won’t happen anytime soon, but the idea is there. El Presidente was recently asked about his crypto opinion on an interview, and surprisingly, he ‘voted’ for them. Of course, he said that the issue must be approached with caution, citing the subject as a relative unknown.

As Fernandez explained, cryptos are still a new thing and quite unknown, and many of his ministers shared the same belief. However, he officially recognizes their power, and has assembled a team of experts to look into how they could help Argentina financially. The host of the interview program asked Fernandez is he would vote to accept cryptocurrencies as legal tender. To his surprise, the president said that anything is possible, especially due to the fact that cryptos minimize the risk of inflation.

He reiterated that Argentina shouldn’t reject cryptos at all as they could bring a solution to the inflationary problem.

Not Great News for the Central Bank

One institution that wasn’t happy about Fernandez’s comments was the Central Bank of Argentina. A spokesperson stated that the such a move would be prejudicial to the system, especially if the money from cryptocurrencies is mixed with the funds coming from traditional exchange markets.

This isn’t the first time for financial organizations to reject cryptos. They all loathe Bitcoin and cryptocurrencies simply because they reject the traditional way of doing business.

Cutting out the middle man leaves banks with no income. They’re notoriously against cryptocurrencies while the world is seeing the benefits of adopting crypto. Argentina’s Central Bank is no exception, and president Fernandez’s comments have certainly struck the hornets’ nest.

With El Salvador openly accepting cryptos and many South American countries poised to follow its example, it remains clear that the door for Argentina is open. While Fernandez is interested in the subject, it’s clear that there will be opposition among his peers. It remains to be seen if a law is drafted and a bill passes and if it will help Argentina overcome its crisis.

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August 18, 2021: • No Comments

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