Consternation swept across Central and South America after El Salvador decided to accept Bitcoin as legal tender. On the other hand, the president of Argentina has supported the adoption of the original cryptocurrency(Bitcoin).
Alberto Fernandez talked about digitalization in an interview with Caja Negra. According to the President’s response, Argentina’s central bank might consider creating its digital currency. It may also consider legalizing Bitcoin.
He said that BTC adoption has the most significant advantage because it offsets inflationary effects due to its limited supply of 21 million coins.
Although I don’t wish to look too far into future, there’s no reason not to. This may be a good choice.he added.
Argentina’s government announced its intention in July 2018 to make Bitcoin a viable payment option for its workforce. But, the president has now indicated his interest in Bitcoin acceptance and potential.
Argentina has struggled with high inflation for many years. In June 2021, the cost of consumer goods and services increased by more than 3%. As a result, analysts concluded that the 12-month rate of inflation climbed by more than 52%.
The Argentine Peso has lost 85% of its value compared to the US Dollar over the past five years, relative to macroeconomic standards.
The president of the country indicated that he was concerned about using the underlying cryptocurrency as a hedge against inflation. However, he stated that he would also accept it for the sake of public record keeping.