Argentine president admits to CBDC issuance and bitcoin legalisation
Argentine President Alberto Fernandez has suggested that bitcoin could help the country cope with inflation and has allowed for the possibility of CBDC issuance. During an interview with Filo News, the politician said he had no reason to oppose the introduction of digital assets.
Asked about the possible issue of a national digital currency and the legalisation of bitcoin, the president said:
"I don't want to go too far [...] but there is no reason to say no. They say the advantage [of cryptocurrencies] is that the inflationary effect is largely reduced to zero."
Inflation is one of the most pressing problems for Argentina. The economy, which Fernández inherited in 2019 from previous president Mauricio Macri, was in dire straits. According to government figures, the Argentine peso has depreciated by 77% since December 2019.
Fernandez noted that bitcoin and other cryptocurrencies are increasingly seen as a great inflation hedge, but he himself is cautious about such an approach:
"This is a global debate and I have to admit that I am cautious about this topic. In my case, the caution comes from the fact that they [cryptocurrencies] are not very familiar and clear to me yet. Many people have similar fears, which is why we are not seeing systematic adoption. But it is something to think about."
The position of Miguel Pesce, governor of the Central Bank of Argentina, differs from the president's vision. At a recent IAEF conference, he stated that bitcoin is not a financial asset and has no value. The official also noted that cryptocurrencies "can be very harmful" to economic stability.
Recall that in May, Argentina's Federal Administration of Public Revenues required cryptocurrency exchanges to transmit monthly data on user transactions.