With the economic crisis that has been going on for years in the Latin America region becoming insurmountable, there has been more talk about whether Bitcoin can be a legal currency. The last positive statement about Bitcoin, which is currently seen as the biggest defense mechanism against inflation, came from Argentina President Fernandez.
In these days, when even the USA, the world’s strongest economy, is discussing inflation intensely, President Alberto Fernandez in Argentina, which has been struggling with the economic crisis for a long time, stated that there is no reason to say ‘No’ to Bitcoin.
“Maybe this is a good way to go”
Speaking to the country media, Fernandez answered the question whether they would like to use central bank digital currencies or even make Bitcoin a legal currency like El Salvador:
“I don’t want to go too far, but there’s no reason to say ‘No’ either. Maybe this is a good way to go. When I asked, they said that it has reduced the effects of inflation to zero. Actually, this is a global debate. I’ll admit, I’m approaching this matter with caution. There are things that are hard to understand about the price increase. People all over the world are discussing it. I still think that the system is not fully expanded, but of course it is something to consider.”
$100 in 2015 equals $661 now!
Argentina is one of the countries that have the most problems with inflation. According to Bloomberg’s “Poverty Index”, the country ranks second in this sense. In fact, at the beginning of Mauricio Macri’s term, when Fernandez took over the presidency in 2019, what could be done with $100 in 2015 can now be done with $661 in the country.
Black market is breaking records
Argentina also has a very strict foreign exchange control. It is stated that due to these strict controls, black market foreign exchange sales in the country broke records. Therefore, Argentina is a very different country in this sense from El Salvador, where the dollar is a legal currency.
Bitcoin is spreading in Argentina
Bitcoin purchases have been on the rise in recent years in Argentina, which has suffered greatly from inflation and the local currency peso has consistently depreciated. While investors see Bitcoin as an indirect route to the dollar, DAI from stablecoins is also being taken seriously.
Argentina Central Bank chief spoke negatively about Bitcoin
Contrary to the positive comments of Argentine President Fernadez, Miguel Pesce, the head of the country’s central bank, made negative comments about the largest cryptocurrency earlier in the week:
“Bitcoin is not a real financial asset and does not provide lasting profitability.”
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