A director from Argentina’s central bank publicly endorsed the country’s planned central bank digital currency (CBDC) as a potential remedy for economic issues.
Juan Agustín D’Attellis Noguera stated in a recent TV interview that the “digital peso” could help stabilize Argentina’s troubled economy by 2024. He cited the CBDC’s traceability as a key benefit for broadening the tax base.
Noguera spoke confidently about the digital peso’s introduction happening gradually, with the CBDC coexisting with cash initially before fully replacing fiat currency.
His comments come after Economy Minister Sergio Massa, who is running for president, pledged to launch a digital peso if elected to “solve” Argentina’s persistent inflation. Polls show Massa slightly behind pro-Bitcoin candidate Javier Milei.
Noguera claimed the CBDC would resolve Argentina’s monetary challenges
Noguera claimed the CBDC would resolve Argentina’s monetary challenges, as the volatile local peso often competes with the dollar as a payment method. The bank official sees the traceable digital currency as helping tax collection and bringing stability.
However, some analysts are skeptical that a CBDC alone can fix the fundamental economic issues plaguing Argentina. The country has turned to digital currency as its peso has lost over 90% of its value in the last 10 years.
Nonetheless, Argentina’s central bank is pushing forward with a digital peso pilot in 2023. With senior officials touting its expected benefits, the government aims to position a CBDC as a cure-all for inflation and currency instability.
The coming presidential election may determine the digital peso’s future. But the central bank is already laying the groundwork in hopes that the CBDC can restore both economic and political fortunes.