The president of Argentina stated that the country had no reason to oppose a possible introduction of bitcoin.
El Salvador’s decision to adopt BTC as legal tender unsettled the cages in Central and South America. In a recent interview, the President of Argentina, Alberto Fernandez, was the latest to express some support.
Fernandez spoke in an interview with the local media Caja Negra about the topic of digitization and the country’s position.
More specifically, he received a question about whether Argentina would consider launching its own central bank digital currency and possibly even using Bitcoin as legal tender.
“I don’t want to go too far out on a limb … but there is no reason to say ‘no.’ Perhaps that is a good path to take.”
Argentina’s Issue with Inflation
The president added that the biggest benefit of adopting bitcoin is that it “largely offsets inflationary effects” as the asset’s maximum supply is 21 million coins.
This particular problem is one that Argentina has been trying to solve for many years. In June 2021 alone, consumer prices rose by more than 3%. Hence, the analysts concluded that the 12-month inflation rate has exceeded 50%.
On a broader level, the Argentine peso has depreciated about 85% against the US dollar over the past five years.
Nonetheless, the country’s president admitted that he has his concerns about considering large cryptocurrencies as a hedge against inflation.
“It’s a global debate, and I must confess that it’s a topic [that should be approached with] caution. In my case, there is caution because of how unfamiliar it is and because it’s hard to understand how this fortune materializes.”
He added that many people have similar concerns about why BTC has not yet reached mainstream levels.
In June of this year, El Salvador became the first country to accept Bitcoin as legal tender. Since then, several other countries have also participated in this idea, but have not yet taken any concrete action.