Argentina’s president says country open to adopting Bitcoin but expresses caution

Argentina's president says country open to adopting Bitcoin but expresses caution
1 year ago
2 mins read

Amid an increasing likelihood for South American countries to adopt Bitcoin, Argentina’s President Alberto Fernandez has cautiously indicated his support for the asset. 

During an interview with a local news outlet Caja Negra, Fernandez lauded the concept behind Bitcoin but acknowledged the skepticism emanates from the asset’s unfamiliarity, Pymnts.com reports.  

According to the Head of State, although Bitcoin is witnessing a global debate, people are also concerned about factors like price volatility. At the same time, President Fernandez did rule out the possibility of launching a central bank digital currency.

Notably, since El Salvador became the first country from the region to declare Bitcoin a legal tender, most countries are highly expected to follow suit. When asked about the possibility of Argentina emulating El Salvador, President Fernandez did not rule out such a move.

“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,” said Fernandez.

Like most South American countries, Argentina is also facing high rates of inflation. The economic situation has forced most residents to opt for cryptocurrencies to tackle the devaluation of the local currency.

However, President Fernandez’s stand on Bitcoin differs from the country’s central bank president Miguel Pesce. According to Pesce, Bitcoin is not a real asset and lacks stability.

Concerns over South America Bitcoin adoption

Despite most Latina American countries are warming up to Bitcoin, several economists have raised concerns. 

For instance, Professor of Applied Economics at Johns Hopkins University Steve Hanke warned that El Salvador’s move would have a long-term negative impact on the economy.

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Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.