The president of Argentina, Alberto Fernandez, has been considering giving crypto a larger role in Argentina’s economy.
In a Caja Negra interview aired by Filo.news yesterday, answering the question of whether he would consider making use of a central bank digital currency. El Salvador, another country with a rocky monetary history, has adopted Bitcoin as legal tender.
The Argentine president commented, “I don’t want to go too far out on a limb…but there is no reason to say no…Perhaps that is a good path to take…They say the advantage is that the inflationary effect is largely nullified.”
Bitcoin May Help Argentina Cope with High Inflation
Fernandez inherited the inflation from the former president and businessman Mauricio Macri.
The government’s data on inflation demonstrates that the Peso has lost a substantial amount of value since Macri’s government ended.
Since the government imposes strong controls on foreign currency exchange, the black market for foreign currency in Argentina is massive.
However, the president also showed his doubt about Bitcoin as a potential hedge against inflation, “It is a global debate, and I must confess that it is a topic (which I should come to with) caution. In my case, there is caution because of how unfamiliar it is, and because it is hard to understand how this fortune materializes.”
Crypto Interest in Argentina Are Increasing
As crypto can be used as indirect exposure to the U.S. dollar to protect investors in the country from the devaluation of the local currency, the Argentine peso, interest in cryptocurrencies has continued to considerably increase.
In addition to Bitcoin, other stablecoins such as DAI are also popular among Argentine traders. Argentina has massive natural resources, but this has failed to lift the nation from poverty, or help sustainable industry grow in the country.
Many nations in Latin America have struggled with high inflation. As an alternative to national currency, cryptos have been widely used for both transactions and savings in numerous Central and South American nations.
