Argentina President Alberto Fernandez has indicated support for digital assets. In an interview on August 12, Fernandez asserted that there is no reason to push back against the emerging asset class.
“I don’t want to go too far out on a limb, but there is no reason to say ‘no’. They say the advantage is that the inflationary effect is largely nullified,” said Fernandez.
Rejection from central bank
Despite the president’s openness to exploring digital assets, the head of Argentina’s central bank, Miguel Pesce, appears to be less supportive of the industry.
At the opening of the third edition of the Digital Finance Forum, Pesce said that cryptocurrency does not underlie or generate any profitability. However, he did not deny its usefulness as a payment method.
Pesce expressed his intention to “regulate the intersection of Bitcoin with the payment system and exchange market,” warning the cryptocurrency “could be very detrimental” for domestic financial stability.
According to Pesce, The Central Bank of the Argentine Republic (BCRA) has the mission of “preventing low-sophistication investors” from operating with cryptocurrencies, in order to avoid losing their savings with inconvenient operations.
These developments come as countries around the world are beginning to open up to cryptocurrencies. Earlier this year, El Salvador President announced that each of their registered citizen of their nationwide crypto wallet app will receive $30 in free bitcoin.