Digital Peso: Argentina's Economic Boost
Juan Agustín D’Attellis Noguera, a distinguished figure at the Banco Central de la República Argentina, the nation's central bank, has publicly lent his support to Minister of Economy Sergio Massa's enthusiastic endorsement of a central bank digital currency (CBDC) as a potential solution to bolster the national economy.
During a televised discussion, Noguera voiced his unwavering belief in the transformative potential of the "digital peso," suggesting that it could potentially play a pivotal role in stabilizing the Argentine economy by the year 2024. He expounded upon the intrinsic value of the CBDC, highlighting its unique traceability feature, which, he contends, could significantly enhance the government's ability to collect taxes:
Through the remarkable traceability capabilities of digital currency transactions, even though the identities of the transacting parties remain shrouded in anonymity, a tangible record of these transactions is readily discernible. This, in turn, serves to expand the tax base, affording the government an opportunity to increase its revenue without the need for tax hikes and, intriguingly, possibly facilitating tax reductions.
Furthermore, Noguera underscored the CBDC's potential to address Argentina’s perpetual monetary predicaments, particularly the persistent competition faced by the inherently volatile Argentine peso when juxtaposed against the United States dollar in the realm of payment transactions.
With a resolute tone, Noguera communicated that the CBDC's rollout would be a meticulously orchestrated process, characterized by a gradual introduction that would coexist harmoniously with traditional cash. The ultimate objective, he articulated, would be the complete phase-out of paper fiat currency, marking the culmination of this ambitious endeavor.
In a noteworthy development, on October 2, Minister Massa, who is concurrently a presidential candidate, made a solemn commitment to launch a CBDC if he attains the highest office. His aspiration is to combat Argentina's enduring inflation crisis, a pressing concern that has plagued the nation for some time. Present electoral indicators suggest that Massa is slightly trailing Javier Milei, an advocate for Bitcoin and a candidate staunchly opposed to the central bank, who passionately champions the adoption of the United States dollar as Argentina’s official currency.
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