Key Insights
- The Central Bank of the Argentine Republic is fast-tracking the development of a digital peso for the national economy.
- Argentina’s central bank director revealed plans to present the CBDC project to the country’s parliament, Congreso de la NaciĂłn Argentina.
- The move is part of a larger political debate, with presidential candidate Sergio Massa backing the CBDC to combat inflation.
The Central Bank of the Argentine Republic has taken a decisive step towards the implementation of a central bank digital currency (CBDC).
Following a series of discussions regarding the potential advantages of a CBDC for the national economy, the bank has announced that it is expediting efforts to craft the necessary legislation.
During a recent public discussion hosted by the Filo News channel on October 18th, Argentina Central Bank director Juan AgustĂn D’Attellis Noguera disclosed the central bank’s ongoing work on the legislative framework for the digital peso CBDC project, a proposal recently put forward by the Minister of Economy and presidential candidate, Sergio Massa.
Noguera, in his statement, expressed the urgency of the project’s progress, noting that it would be presented to the Congreso de la NaciĂłn Argentina, the country’s parliament, “as soon as possible.” He commended Massa’s approach to the CBDC initiative while subtly critiquing the stance of another presidential candidate, Javier Milei, known for his pro-Bitcoin outlook and calls for the “dollarization” of the Argentine economy.
This isn’t the first time that Noguera has defended the concept of a CBDC. Earlier in October, he emphasized that a digital peso could play a pivotal role in stabilizing the Argentine economy by as early as 2024.
According to Noguera, one of the CBDC’s defining features is its traceability, which, in his view, offers the government a valuable tool for tax collection.
Presidential Candidates Clash Over Argentina’s CBDC Future
On October 2nd, presidential candidate Massa had already pledged to introduce a digital peso if he emerges victorious in the election. His motivation behind this commitment lies in the need to address Argentina’s persistent issue of inflation.
Current election polls indicate that Massa is running a close second to Javier Milei, who advocates for the adoption of the United States dollar as Argentina’s official currency while challenging the central bank’s role in the nation’s economic affairs.