Argentinian President Alberto Fernandez: Maintains an Open Attitude Towards Adopting Bitcoin

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Argentine President's Open Attitude Towards Bitcoin

In an interview aired on Filo.news yesterday, Argentine President Alberto Fernandez was asked whether he would consider using a central bank digital currency or follow El Salvador's lead in adopting Bitcoin as a legal tender.

"I don't want to say too much, but we have no reason to oppose it. And perhaps this is a good way," said Alberto Fernandez.

While Alberto Fernandez remains skeptical about adopting cryptocurrencies, he acknowledges that they could greatly help Argentina's economy. He also mentioned, "The advantage of doing so is to significantly resist inflation."

Argentina's Inflation Issue

According to data from KNOEMA, Argentina had an inflation rate of 42% in 2020, ranking fifth highest in the world. Based on the Argentine government's inflation data, the inflation rate has reached 434% over the past five years, meaning that what cost $10 five years ago now costs $53.4.



Argentina's high inflation rate has led to severe devaluation of its national currency, the "peso," prompting people to exchange pesos for US dollars to preserve value. However, strict currency exchange controls in the country prevent individuals and businesses from acquiring enough dollars from the government, indirectly fueling a thriving black market where more pesos are required to obtain dollars. In this vicious cycle, the government is considering adopting cryptocurrencies to stabilize the domestic economy.

Concerns and Views on Bitcoin

"This is a global debate, and I must admit that this topic needs to be approached with caution. Personally, my caution comes from not being familiar with cryptocurrencies, making it difficult for me to understand how this wealth is achieved," said Alberto Fernandez, expressing skepticism about how Bitcoin's price has increased over the years.

"Many people around the world have these concerns, which is why this project or system has not been widely expanded. But this is something to consider," added Alberto Fernandez.

While the Argentine President's attitude towards cryptocurrencies is gradually becoming more open, Central Bank of Argentina Governor Miguel Pesce also mentioned this week, "I believe Bitcoin is not a true financial asset and does not generate any long-term profitability."

Currently, there are various views on cryptocurrencies within Argentina. However, it is undeniable that addressing the country's inflation issue is a top priority. With insufficient foreign exchange reserves domestically to provide an adequate amount of dollars to stabilize the economy, the adoption of cryptocurrencies may offer a way out for the country.