Central Bank Rejected the Idea of Argentina President on BTC and CBDC

Central Bank Rejected the Idea of Argentina President on BTC and CBDC
  • Argentina’s President has shown interest and support for crypto assets.
  • Pesce appears to be threatening a crackdown on the industry.
  • He also rejected the decision regarding CBDC.

Alberto Fernandez, President of Argentina, has shown interest and support for crypto assets, stating there is no specified reason to push back against the emerging asset class. But the head of the Central bank has rejected the idea.

Accordingly, on August 12 in an interview with Caja Negra, a local media outlet, Argentina President has answered a question about, whether he would consider exploring a central bank digital currency (CBDC), or even accept Bitcoin (BTC) as authorized tender as El Salvador did earlier this year.

Furthermore, Fernando answered,

“I don’t want to go too far out on a limb, but there is no reason to say ‘no’,”.

Also, he added, “They say the advantage is that the inflationary effect is largely nullified”.

Henceforth, inflation was a defining issue for the administration of Argentina’s previous president, businessman Mauricio Macri. According to government data, 100 Argentine pesos since Macri left in 2019 would be worth the equivalent of 661 pesos today.

Regardless of Argentina’s strict currency controls, the present president has stated a growing perception of Bitcoin as a hedge against inflation in the larger global economy.

Argentina Central Bank Head Rejected Fernando idea

Henceforth, despite the president’s vulnerability to exploring crypto assets. The head of Argentina’s central bank, Miguel Pesce, appears to be threatening a crackdown on the industry. During the Argentine Institute of Executive of Finance’s Digital Finance Forum on August 10, Pesce spoke about cryptocurrency, distinguishing digital assets as a threat to economic stability and foreshadowing tighter regulations for the sector.

Even more, Pesce declared that BTC fails to generate value for investors outside of short-term hype cycles.  Also, he compared Bitcoin to a commodity. Pesce concluded that Bitcoin (BTC) is not a financial asset as mentioned by the country’s National Securities Commission.

Pesce stated, “We are concerned that (cryptocurrencies) are used to generate undue profits on unsuspecting people”. He also rejected the decision regarding, Argentina would explore a central bank digital currency (CBDC).

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