Argentina's President, Alberto Fernandez, is open to adopting Bitcoin as a legal tender to combat inflation.
Argentina's President, Alberto Fernandez, said last week that he was open to using Bitcoin as legal tender to combat inflation. The comments were made during a Filo News local television interview.
During the conversation, Fernandez was amenable to the idea of Bitcoin becoming legal tender and playing a larger role in the economy of Argentina.
"I don't want to go too far out on a limb [...] but there is no reason to say no," the president remarked when asked if Argentina would follow El Salvador's lead in adopting Bitcoin.
While both Argentina and El Salvador have high inflation, the US dollar is not legal tender in Argentina, and the country has strict currency exchange regulations, creating a black market for foreign and digital currencies.
Argentina is now ranked eighth in the world inflation index, with an inflation rate of 51.8 percent, according to Trading Economics. In line with this data, Bloomberg ranked Argentina as the world's second most miserable economy in 2020. The country's requirement for a hard store of value, such as Bitcoin, is obvious.
President Fernandez remarked, "They believe the advantage is that the inflationary effect is virtually negated."
The president expressed a healthy amount of scepticism in his remarks. "It's a worldwide debate, and I'll admit that it's a subject I approach with care. In my case, caution is warranted due to the unfamiliarity of the situation and the difficulty in comprehending how this good fortune manifests "He was alluding to the rising price of Bitcoin.
The president's remarks contrasted sharply with those made earlier this week by Argentina's central bank head, Miguel Pesce, who said Bitcoin "is not a legitimate financial asset" and "does not create any long-term profitability," according to a local news station.
"Many people around the world have these fears," Fernandez continued, "and that is why the initiative, or the system, has not yet grown." But it's something to think about."
The president stated, "Perhaps it is a good path to take."
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