Argentina’s President: No Reason to Push Against Adopting Bitcoin

El Salvador’s decision to adopt BTC as a legal tender has rattled the cages in Central and South America. Argentina’s president was the latest to showcase support to some extent in a recent interview.

• Speaking to the local media outlet Caja Negra, Alberto Fernandez touched on the topic of digitalization and where the country stands on it.
• More specifically, he received a question whether Argentina will look into launching its own central bank digital currency or perhaps even adopting Bitcoin as a legal tender.

• “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.”

• He added that the most significant advantage of going with the BTC route is that “the inflationary effect is largely nullified” because of the asset’s maximum supply of 21 million coins ever to exist.
• This particular issue is what Argentina has been struggling with for years. In June 2021 alone, consumer prices increased by more than 3%. Thus, analysts concluded that the 12-month inflation rate has grown above 50%.
• On a more macro scale, the Argentinian peso has lost roughly 85% of its value against the US dollar in the past five years.
• Nevertheless, the country’s president admitted that he has concerns of his own when it comes down to viewing the primary cryptocurrency as a hedge against inflation.

• “It’s a global debate, and I must confess that it’s a topic [that should be approached with] caution. In my case, there is caution because of how unfamiliar it is and because it’s hard to understand how this fortune materializes.”

• He added that many people have similar worries, which is why BTC has yet to reach a mainstream level. However, “it is something to consider.”
• In June this year, El Salvador became the first country to accept Bitcoin as a legal tender. Since then, several other nations have dabbled with the idea but to no actual actions yet.