- 10 May 2022
- Posted by: Cryptovalues
- Category: Central Banks, Cryptovalues News, World News
In March, Argentina reached an agreement with the International Monetary Fund to restructure the debt of Buenos Aires, which would also include a clause against cryptocurrencies, which are becoming increasingly popular in the country.
The country had to request the intervention of the IMF for a loan 45 billion . which is therefore a very large amount with the public coffers in great difficulty, as well as a major slice of the debt that the country has to foreign countries.
The clause raises eyebrows because “the government, in order to promote financial stability, will discourage the use of cryptocurrencies to cut money laundering and the informal economy. Similarly, digitisation of payments will enjoy incentives and further protection will be offered to the financial consumer.”
But let’s see what has happened in the last few days in a series of actions at odds with the precepts given: in Buenos Aires the administration will start accepting cryptocurrencies as payment for local taxes. The exchange used will instantly convert the digital currencies it receives into Peso.
Initiatives in favour of the crypto sector continue in a country that is really ahead of its time with its citizens looking to the future and, almost disregarding the IMF warning, Banco Galicia, one of the most important banks in Buenos Aires, has started to offer its customers the service of buying and selling cryptocurrencies.
It is a financial giant with 4 million customers, distributed between individuals and the country’s large groups, and more than 600 branches.
The cryptocurrencies supported are Bitcoin, Ethereum, Ripple and USDC, not many, but the signal given by such a large bank is very telling, in a country with proven problems and public debt failures on the agenda.
These attentions to the digital sector led to the intervention of the Argentine Central Bank, which immediately banned banks from allowing their customers to buy crypto assets directly.
The justification? Once again the IMF mantra of ensuring security and stability, which the crypto sector would undermine.
We are waiting for events, but we cannot underestimate the advancement of the entire sector, especially in those countries that are most affected by inflation and where crypto and Bitcoin can be a viable alternative to the local currency, also and above all as a store of value.
In South America, Rio de Janeiro will also accept cryptocurrencies for the payment of local taxes from 2023.