Citizens of Argentina are also taking a keen interest in the Bitcoin market just like the rest of the world. The rising popularity of Bitcoin has increased to a level that the government can no longer ignore the need for crypto-related regulations in the country. Many South American countries are opting for the federal adoption of cryptocurrencies.
The president of Argentina, Alberto Fernandez, recently told the media that he sees many advantages that blockchain has to offer. Speaking to local media outlet Caja Negra, he claimed that critical opinion about Bitcoin comes from the lack of knowledge about its structure and merits. He further added that Bitcoin has become part of the drawing-room discussions all over the world. However, many people are only focusing on the price volatility of the flagship cryptocurrency.
The positive stance of the Argentina’s president towards Bitcoin is not a mere coincidence. Alberto Fernandez also hinted at introducing a new CBDC or Central Bank Digital Cryptocurrency in the region. The Chief of Staff at the Central bank of Argentina does not seem to be on the same page. Miguel Pesce claims that Bitcoin cannot be identified as a real asset class.
He also believes that the crypto coin lacks stability. For the time being, many South American Countries are warming up to digital asset trading. This trend has been set off by El Salvador that has decided to become the first nation in the world to accept Bitcoin as a legal tender. President Fernandez also hinted that a wider Bitcoin adoption may be in cards for Argentina as well.
The news of El Salvador trying to adopt Bitcoin as a mode of payment was not appreciated by everyone. The IMF that has been planning to sign a $1 billion loan to the country take up an issue with the notion. On the other hand, academics like Professor Steve Hanke at John Hopkins University remarked that Bitcoin adoption can present the country with economic issues in the long run.
Just like many South American countries, Argentina is also dealing with the issue of increasing inflation rates. President Fernandez believes that a huge advantage of Bitcoin adoption is that the rising inflation effect is neutralized with it. El Salvador President, Nayib Bukele, also wanted to introduce Bitcoin payments in the country to save the country from the constantly falling value of the US dollar.