The Central Bank of the Argentine Republic has made significant strides in expediting the formulation of legislation essential for the implementation of a Central Bank Digital Currency (CBDC) within the country. This proactive approach comes after a series of discussions on the potential advantages of a CBDC for the Argentine economy.
In an illuminating revelation, Juan Agustín D’Attellis Noguera, Director of the Central Bank of Argentina, confirmed on October 18th that they are diligently working on crafting the legislative framework for the digital peso CBDC project. This project, which has garnered considerable attention, was recently introduced by the Minister of Economy and presidential candidate, Sergio Massa.
Noguera further emphasized that the CBDC project will be presented to the Congreso de la Nación Argentina, the nation’s parliament, as expeditiously as possible. He commended Massa’s commitment to the CBDC initiative and, indirectly, voiced his reservations about the stance of another presidential candidate, Javier Milei, who is a proponent of “dollarization” for the Argentine economy.
Notably, this is not the first time Noguera has come forward to advocate for the concept of a CBDC. In early October, he expressed his belief that a digital peso could serve as a stabilizing force for the Argentine economy, with potential implementation as early as 2024. In Noguera’s view, the pivotal feature of the CBDC is its traceability, which would enable the government to enhance its tax collection mechanisms.
Sergio Massa, on October 2, made a resolute commitment to introduce a digital peso if he emerges victorious in the election. His motivation is to address Argentina’s persistent issue of inflation, which has been a recurring concern. As per the latest election polls, Massa is in a closely contested race, with Javier Milei, a proponent of adopting the United States dollar as Argentina’s official currency, standing as a formidable contender. Milei also staunchly opposes the central bank’s role in the nation’s economic landscape.
This move by the Central Bank of the Argentine Republic to accelerate the development of CBDC legislation reflects a growing recognition of the potential benefits and transformative impact of digital currencies within the nation’s financial ecosystem. The development of the digital peso is seen as a potential solution to longstanding economic challenges, and its progress is closely watched by both citizens and the global financial community.
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