Argentina's Central Bank Director Supports Launch of Central Bank Digital Currency (CBDC)

Argentina's Central Bank Director, Juan Agustín D’Attellis Noguera, recently voiced his backing for the idea of launching a central bank digital currency (CBDC), a concept that has been at the forefront of economic discussions led by the Minister of Economy, Sergio Massa. This digital variant of the peso, often referred to as the "digital peso," is seen by many as a potential solution to the economic challenges the nation faces.

Speaking on television, Noguera highlighted the ability of the CBDC to offer transparent tracking of transactions. Such a feature could aid the government in expanding the taxable base without necessarily increasing tax rates. In fact, he suggests that this traceability might even allow for the reduction of certain taxes since transactions using the digital currency would offer evidence of activity, even if the parties involved remain anonymous.

Furthermore, Noguera sees the digital peso as a strategic answer to the nation's currency instability. The Argentine peso's volatility often leads citizens to prefer the U.S. dollar for transactions, an issue the digital peso might address. His discussion of the topic conveyed certainty. He projected a phased rollout of the CBDC, initially working alongside traditional cash, and eventually fully transitioning away from physical paper currency.

Sergio Massa, apart from his role in the economic department, is contending for the presidential seat. On October 2, he vowed to roll out a CBDC during his tenure if elected. The move is intended to address Argentina's ongoing inflation woes. The electoral race sees Massa narrowly lagging behind Javier Milei. Interestingly, Milei's economic stance is notably different.

A strong proponent of Bitcoin, he opposes the central bank's influence and suggests adopting the U.S. dollar as Argentina's official currency.

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