CBDC will Benefit Argentina, Claims Central Banker

Juan Agustín D’Attellis Noguera, a director at the central bank of Argentina, has expressed his support for Sergio Massa, the Minister of Economy, in his proposal to introduce a Central Bank Digital Currency (CBDC) as a means to assist the country’s economy.

Argentina’s Central Bank Supports CBDC

As per a report, the director of Banco Central de la República Argentina, the country’s central bank, Noguera shared his opinion on local television, stating that he believes the introduction of a “digital peso” could contribute to the stabilization of the Argentine economy as early as 2024.

He emphasized that a prominent feature of the CBDC is its traceability, which would enable the government to streamline tax collection processes effectively.

Ease in Tax Collection

He noted: “By having traceability of operations with a digital currency because it is not known who does them, but there is evidence that they were done, you broaden the tax base. This will allow you to raise more without having to raise taxes and even lower them.” 

CBDC to be Rolled Out in a Phased Manner

He assured that the CBDC would be rolled out in a phased manner, running alongside physical cash, and the complete substitution of paper fiat currency would take place in the project’s final phase. 

Unification of Currency in Argentina and Brazil

Previously, there have been discussions and proposals regarding the possibility of Argentina and Brazil adopting a unified currency. Additionally, Brian Armstrong, the CEO of Coinbase, a prominent American cryptocurrency exchange, suggested that Bitcoin (BTC) could be a favorable alternative for a common currency between the two countries. 

Both Alberto Fernandez, the President of Argentina, and Luiz Inacio Lula da Silva, the former President of Brazil, have expressed their commitment to working on the establishment of a single currency for the two nations. In addition, the securities regulator in the country granted approval for an Argentinean futures index based on Bitcoin in May of this year. This index was scheduled to become active on the Matba Rofex exchange.