The director of Banco Central de la República Argentina, Juan Agustín D’Attellis Noguera, has shown his support for the promotion of a central bank digital currency (CBDC) as a solution for the country’s struggling economy. Noguera believes that the introduction of a “digital peso” could help stabilize the Argentine economy as early as 2024.
One of the key advantages of a CBDC, according to Noguera, is its traceability. This means that the government would be able to track transactions made using the digital currency, enabling them to increase tax collection without necessarily raising taxes or even potentially lowering them. This would provide a much-needed boost to the country’s tax revenues.
Additionally, Noguera also highlighted that the CBDC would help address the issue of the Argentine peso’s instability. The local currency often competes with the US dollar, even as a payment method. By introducing a digital currency, the government hopes to bring stability to its monetary system.
Noguera emphasized that the introduction of the digital peso would be a gradual process, with cash and digital currency coexisting for a certain period of time. The complete replacement of paper fiat currency with the CBDC would occur at the final stage of the project.
The Minister of Economy and presidential candidate, Sergio Massa, pledged to launch a CBDC if elected to address Argentina’s long-standing inflation crisis. However, Massa is facing tough competition from pro-Bitcoin and anti-central bank candidate Javier Milei, who advocates for adopting the US dollar as Argentina’s currency.
The introduction of a CBDC in Argentina could have significant implications for the country’s economy. It has the potential to provide stability, increase tax revenues, and modernize the country’s monetary system. However, whether a CBDC will become a reality will ultimately depend on the outcome of the upcoming elections and the government’s commitment to implementing this digital currency solution.