The President of Argentina, Alberto Fernandez, suggested that bitcoin will help the country cope with inflation, and allowed the possibility of issuing CBDC. During an interview with Filo News, the politician said that he has no reason to oppose the introduction of digital assets.
Answering the question about the possible issue of the national digital currency and the legalization of bitcoin, the president said:
"I don't want to go too far [...], but there is no reason to say no. They say that the advantage of [cryptocurrencies] is that the inflationary effect is largely reduced to zero."
Inflation is one of the most acute problems for Argentina. The economy, which Fernandez inherited from the previous president Mauricio Macri in 2019, was in a deplorable state. According to the government, since December 2019, the Argentine peso has fallen by 77%.
Fernandes noted that bitcoin and other cryptocurrencies are increasingly perceived as an excellent tool for hedging inflation, but he himself is cautious about this approach:
"This is a global discussion, and I must admit that I approach this topic with caution. In my case, caution is due to the fact that they [cryptocurrencies] are not yet very familiar and understandable to me. Many people have similar concerns, which is why we do not see systematic implementation. But it's something to think about."
The position of the governor of the Central Bank of Argentina, Miguel Pesce, 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" for economic stability.
Recall that in May, the Federal Office of State Revenue of Argentina obliged cryptocurrency exchanges to transmit data on users ' transactions on a monthly basis.