- The governor of Argentina’s central bank is concerned about digital currencies and is keeping a careful eye on them
- Inflation has been high in Argentina’s monetary system for the past decade
- The head of Argentina’s Central Bank (BCRA), Miguel Pesce, was speaking at a fintech event hosted by a local NGO
The governor of Argentina’s central bank is concerned about digital currencies and is keeping a tight eye on them, but he has no problem with individuals who choose to accept them as payment. He cited the volatility of digital currencies, their lack of legal tender status, and their vulnerability to cyber-attacks as reasons why they cannot be utilized as currencies in the South American country. The head of Argentina’s Central Bank (BCRA), Miguel Pesce, was speaking at a fintech event hosted by a local NGO. He informed the audience that the central bank recognizes the need to educate and safeguard investors.
Governor wants people to be educated regarding the investments they are making
He believes that they must conduct the work of education, explaining to the public what these instruments are all about, in order to avoid instances where someone makes an investment over which he has no control owing to ignorance.
Pesce chastised the name cryptocurrency, claiming that it connotes something concealed and opaque. This aligns with the BSV blockchain’s position that Bitcoin, as envisioned in Satoshi Nakamoto’s original white paper, can be traced on an immutable and transparent record.
Importantly, Bitcoin does not wish to be recognized as a cryptocurrency, nor does it seek to market itself as a tool for anonymity or criminality, as Elas stated in their statement to the Australian Senate. It is a utility ledger that provides a traceable and useful currency system that may be used in a wide range of company scenarios and opportunities.
According to Argentina’s Governor, digital currencies were not to be used as an investment vehicle
The governor of Argentina’s central bank went on to say that digital currencies were supposed to be used as currency, not as an investment vehicle. Argentina’s monetary system has seen severe inflation over the last decade, prompting many to abandon the peso in favor of the dollar. Pesce ordered in 2019 that citizens can only acquire up to $200 in USD every month in order to slow the flight to the greenback. Exporters were also required to convert their USD payments to pesos.
As a result of these decrees, many people are looking towards digital currencies as a replacement for USD and peso payments. Even if citizens receive paid in digital currencies, as Pesce mentioned during the event, they may need to convert to the peso.
This is correct; it is a central bank rule, he explained to the audience. Payment can be made in the instrument or in the products desired, just as payment in species can be made in cryptocurrencies. The central bank, on the other hand, will keep a close eye on the industry to make sure it isn’t being exploited to get around exchange restrictions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.