After discussing the possible benefits of a central bank digital currency (CBDC) for the national economy, the Central Bank of the Argentina Republic announced that it has expedited its work on legislation to implement this in the country.
During a public debate on Filo News on October 18th, the Director of the Central Bank, Juan Agustín D’Attellis Noguera, stated that they are working on the legal framework for the CBDC project in pesos proposed by the Minister of Economy and presidential candidate Sergio Massa.
Noguera affirmed that they will present the project to the Argentina National Congress as soon as possible.
Furthermore, he praised Massa’s proposal for the CBDC. He indirectly criticized the position of the other presidential candidate, Javier Milei, who has publicly advocated for the ‘dollarization‘ of the Argentine economy.
This is not the first time Noguera has advocated for a CBDC.
In early October, he expressed his conviction that a digital currency backed by the Argentine peso could help stabilize the country’s economy by 2024.
According to the official, the fundamental feature of the CBDC is its traceability, which would enable the government to collect taxes more efficiently.
On October 2nd, Massa pledged to introduce a digital currency in pesos if he wins the elections to address the inflation issue in Argentina.
According to the most recent polls, Massa is slightly behind Javier Milei, who advocates for adopting the U.S. dollar as Argentina’s official currency and opposes the role of the Central Bank in the South American economy.
What is a CBDC?
A central bank digital currency (CBDC) is a currency that has gained importance in the economies of various countries that are analyzing the feasibility of implementing it in a banking sector that is becoming increasingly digital.
A CBDC is a digital, non-physical version of the banknotes and coins used in everyday transactions. A central bank issues these and is not equivalent to well-known cryptocurrencies.
These digital currencies have the same value as physical ones, but the goal is to reduce the use of cash and digitize banking operations. One highlighted benefit of the CBDC is security, as transactions can be traced, thus reducing illicit activities.