El Salvador’s decision to adopt bitcoin as a legal currency has shaken many government agencies in Central and South America.
The Argentine president had a different view and showed some support towards Bitcoin in a recent interview.
In his speech to the local media agency “Caja Negra”, touched Argentine President “Alberto Fernandez” to the subject of digitalization and the position of the state of them.
More specifically, the president received a question as to whether Argentina would consider launching its own central bank digital currency or perhaps even adopting bitcoin as legal tender.
And he answered:
I don’t want to go too far… but there’s no reason to say “no”.
This might be a good way to take it.
The most significant advantage of using bitcoin is the inflationary effect which is largely canceled out by the maximum supply of the original of the 21 million blocks that ever existed.
This particular issue is what Argentina has been grappling with for years.
In June 2021 alone, consumer prices rose more than 3%.
Thus, analysts concluded that the 12-month inflation rate has grown above 50%.
More broadly, the Argentine peso has lost nearly 85% of its value against the US dollar in the past five years.
The head of state admitted that he has his own concerns, when it comes to viewing the underlying cryptocurrency as a hedge against inflation, commenting:
It is a global debate, and I must admit that it is a topic that must be approached with caution.
In my case, there is caution because it is unfamiliar and because it is difficult to understand how this wealth is achieved.
He added that many people have similar concerns, which is why Bitcoin has not yet reached the mainstream.
He told about it:
It is something to consider and take into account.
In June of this year, El Salvador became the first country to accept Bitcoin as legal tender.
Since then, several other countries have engaged in the idea but without taking actual action yet.