Argentina’s President, Alberto Fernandez, is open to using Bitcoin as legal tender to combat inflation.
Argentina’s President, Alberto Fernandez, suggested this week that he was open to using Bitcoin as legal tender to combat inflation. The remarks were made during a Filo News local television interview.
During the interview, Fernandez expressed interest in Bitcoin becoming legal tender and playing a larger role in Argentina’s economy.
When asked if Argentina would follow El Salvador’s lead in adopting Bitcoin, the president said, “I don’t want to go too far out on a limb […] but there is no reason to say no.”
While both Argentina and El Salvador suffer from inflation, the US dollar is not legal tender in Argentina, and the country has tight currency exchange controls, creating a black market for foreign and digital currencies.
According to Trading Economics, Argentina is currently ranked seventh in the world inflation index, with an inflation rate of 51.8 percent. In line with this statistic, Bloomberg ranked Argentina as the world’s second worst economy in 2020. The country’s need for a hard store of value, such as Bitcoin, is obvious.
“They say the advantage is that the inflationary effect is largely nullified,” explained President Fernandez.
The president’s remarks were delivered with a healthy dose of skepticism. “It is a global debate, and I must admit that I approach it with caution. “There is caution in my case because it is unfamiliar, and it is difficult to understand how this fortune materializes,” he said, referring to Bitcoin’s rising price.
The president’s remarks were markedly more open to the idea of Bitcoin adoption than those made earlier this week by Argentina’s central bank president, Miguel Pesce, who was quoted by a local news outlet as saying that Bitcoin “is not a real financial asset, and does not generate any lasting profitability.”
“Many people around the world have these concerns,” Fernandez explained, “which is why the project, or the system, has not yet expanded. But it is something to think about.”
“Perhaps it is a good path to take,” said the president.