Argentina is open to Bitcoin adoption, says President Alberto Fernández

Argentina’s President Alberto Fernández has suggested that he supports the idea that cryptocurrencies play a bigger role in the Argentine economy, despite his own skepticism.

During an interview on Caja Negra, broadcast yesterday by, Fernández was asked if he would consider using a central bank digital currency, or perhaps even emulating El Salvador and adopting Bitcoin as a legal lender. “I don’t want to risk too much […] but there is no reason to say ‘no’,” Fernández said. “Maybe that’s a good way to do it.”

“y say that the advantage is that the inflationary effect is largely canceled out,” he explained.

Inflation is one of the most sensitive issues in Argentine politics. Fernández inherited the second most “miserable” economy in the world, the second Bloomberg World Misery Index, from former president and businessman Mauricio Macri. According to government data on inflation, $ 100 at the beginning of Macri’s term would equal $ 661 today.

country also imposes strong exchange controls, which have caused a boom in the black market for currencies, something very different from the Salvadoran reality, where the US dollar is legal tender.

Fernandez, however, mitigated his interest in cryptocurrencies like Bitcoin as potential inflation hedges with great caution.

“It is a global debate, and I must confess that it is an argument [that I approach with] attention. In my case, there is caution because of how unfamiliar it is and because it is difficult to understand how this luck materializes, “he said, referring to how the value of Bitcoin has increased over the years.” Many people around 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, “said the president.

Interest in cryptocurrencies has increased dramatically in Argentina in recent years, especially since it can be used as an indirect exposure to the US dollar, protecting investors in the country from devaluing the local currency, the Argentine peso. In addition to simple Bitcoin, stablecoins e.g. VAMOS are also popular with Argentine traders.

But before Bitcoin enthusiasts get too excited, the words of the Argentine president must be measured against those of the country’s central bank. Earlier this week, the president of Argentina’s central bank, Miguel Pesce, said that he believes Bitcoin “is not a [real] financial activity, and it does not generate any [lasting] profitability.”

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