Argentina President Alberto Fernández explained in an interview that he is considering the adoption of Bitcoin (BTC) in the country. Could the cryptocurrency revolution be taking hold in Latin America?
Argentina is considering adopting Bitcoin
The president of Argentina shared his views on Bitcoin in an interview on the Filo.news channel. Alberto Fernández was asked about the issuance of a central bank digital currency (MNBC), but also about a possible adoption of BTC, following the model of El Salvador. On this subject, the president replied:
“I don’t want to get too far ahead of myself, […] but there’s no reason to say ‘no’. Maybe this is a good way to go.”
Like El Salvador’s President Nayib Bukele, his counterpart in Argentina sees Bitcoin as a way to fight the rampant inflation affecting the country’s fiat currency, the Argentine peso (ARS). He thus states:
“We say the advantage is that the effect of inflation is largely cancelled out.”
This is a particularly crucial asset for the country. Argentina is facing one of the most severe inflation rates in the world. Yesterday it was reported that it had reached 29% from January to July 2021, the threshold that had been set for the entire year. For a century, annual inflation has averaged +105%, according to the Argentine Chamber of Commerce.
Latin America, the home of cryptocurrencies
Argentina is just the latest in a growing list of Latin American countries considering cryptocurrency adoption. Price hikes are particularly affecting the region, which is why rounds of digital asset-related measures have been put in place.
In El Salvador, in addition to adopting BTC as a legal currency, the government has chosen to distribute the cryptocurrency to all residents. In Uruguay, a bill aims to promote payments in digital assets. Paraguay has also considered the adoption of cryptos, through one of the government representatives. The arrival of Argentina in these ranks would thus be one more confirmation that Bitcoin has its role to play in the region.