Much has been said about the potential Central Bank Digital Currency (CBDC) of Argentina in recent times following a suggestion by Economic Minister Sergio Massa to utilize the technology for fiscal growth.
The Central Bank of Argentina has revealed plans to push for the implementation of the digital currency and will seek the bill “as soon as possible.”
Juan Agustín D’Attellis Noguera, the bank’s director stated while addressing the public on local news media, Filo that work has commenced around the legislative framework for the digital peso.
The director who has been a fan of the CBDC since its conception expresses eagerness in all stages of the rollout. In his words, the framework would be presented to the country’s legislature Congreso de la Nación Argentina “as soon as possible.”
Noguera also used the opportunity to hail the move by Massa and his approach to solving the current problems in the economy while taking swipes at the alternative which involves the use of private cryptocurrencies and the dollarization of the economy.
Last week Noguera tipped the digital peso to aid tax collections as it would widen the fiscal net leveraging on its ability to trace transactions.
“By having traceability of operations with a digital currency because it is not known who does them, but there is evidence that they were done, you broaden the tax base. This will allow you to raise more without having to raise taxes and even lower them.”
Argentina’s inflation meltdown
The weeks leading up to the country’s Presidential election have been filled with talks concerning the economy and ways of turning market tightening trends.
With inflation rates at triple digits, politicians and policy watchers are thinking outside the box to spur growth in the country.
Pro-Bitcoin (BTC) and leading opposition candidate Javier Milei points to politicians and the central bank as the cause of the country’s financial woes including calls for an end to the country’s top bank.
Argentina ranks third in terms of global inflation rates leading to Milei’s view against the traditional methods deployed by politicians and his move against fiat.
On the other hand, Massa, his main opponent, and Economic Minister, called for patriots to rally against any attempt at dollarization of the economy, pitching the CBDC as a step in the right direction.
“We are going to launch the digital currency in Argentina. We are going to do it globally for all of Argentina accompanied by a laundering law that allows those who have money abroad to bring it and use it freely without new taxes in parallel.”