Argentina's President: There's No Reason to Oppose Bitcoin Adoption

Argentina's president has stated that there is no reason for the country to oppose Bitcoin adoption. El Salvador's decision to make BTC legal tender has sent shockwaves throughout Central and South America. In a recent interview, Argentina's president was the latest to express some support.

Alberto Fernandez spoke to the local media outlet Caja Negra on digitalization and where the country stands on the issue. He was particularly asked whether Argentina would consider developing its own central bank digital currency or possibly accepting Bitcoin as legal money.

“I'm not going to go too far out on a limb... but there's no reason to say 'no.' That could be an excellent path to take.”

He went on to say that the biggest benefit of using BTC is that “the inflationary effect is essentially nullified” due to the asset's maximum supply of 21 million coins ever created.

This is a problem with which Argentina has been grappling for years. Consumer prices grew by more than 3% in June 2021 alone. As a result, researchers found that the 12-month inflation rate had risen to over 50%.

On a larger scale, the Argentinian peso has lost around 85% of its value against the US dollar during the last five years.

Nonetheless, when it comes to considering the principal cryptocurrency as a hedge against inflation, the country's president confessed that he has his own reservations.

“It's a worldwide debate, and I have to admit, it's a matter [that] should be treated with prudence. In my case, caution is warranted due to the unfamiliarity of the situation and the difficulty in comprehending how this good fortune manifests.”

He went on to say that many people have similar concerns, which is why BTC has yet to gain general acceptance. “It is something to think about,” says the author.

El Salvador became the first country to adopt Bitcoin as legal cash in June of this year. Since then, several other countries have flirted with the idea but have yet to take action.


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