Argentina considers Bitcoin to fight inflation

Argentinaa country that for some time has had serious problems from high inflation, is evaluating the use of Bitcoin Specifically to curb the seemingly unstoppable rate of inflation.

Argentina Struggles With Bitcoin To Fight Inflation

Argentina cipher
Argentina tries to fight inflation with Bitcoin

Role Bitcoin As an inflationary tool expected. In many countries where the inflation rate now seems out of control, the rate of bitcoin adoption is rising steadily.

In July, an Argentine deputy, Jose Luis Ramon He introduced a bill to introduce salary payments in bitcoin and cryptocurrency.

In August he himself was president Alberto Fernandez To indicate that the expansion of the use of cryptocurrencies has been seriously considered and to announce the possibility that it will be The central bank could soon create a country digital currency.

But it seems that all this ended in March, after the agreement was signed with International Monetary Fund Forcing the government to discourage the use of cryptocurrencies in exchange for a debt restructuring plan almost 45 billion dollars.

The agreement sparked a protest from the sector’s operators, who accused the government of giving in to simple blackmail.

The CEO of Bitcoin Argentina NGO Javier Madaraja wrote in a blog post on March 10 explaining the procedure:

“We are convinced that the path is neither disincentive nor prohibitive, but rather to work in a coordinated manner with the private and public sectors to exploit the potential of decentralized finance, so that more and more people can negotiate in a safe and secure manner, the armed forces can improve their ability to fight cybercriminals. We are concerned that the authorities Agree to discourage technology already widely adopted by the population themselves, rather than unleashing its potential to address historical problems.”

On the other hand, the extremely high rate of inflation in Argentina Cryptocurrency adoption rate in the special ranking of global coding index Build tenth place in the world.

Now a small town in the province Santa Fe, Cerodino He would decide to make a decision that went against the will of the government itself.

Mayor , Juan Bio DrovitaIn fact, he would have decided to focus decisively on cryptocurrency mining to combat the economic problems related to the crisis and rising inflation.

According to local newspapers, at the beginning of April, the municipality funded a project to establish a large mining farm in the municipality area.

municipality April 10 Have already bought 6 graphics cards Thanks to the contribution of part of his people 6000 people to start the project.

In the face of concerns raised by the community about high volatility related to cryptocurrency prices, the mayor said that while there is no outright purchase of cryptocurrency, mining remains a safe investment option:

“We don’t buy cryptocurrencies and try to make a profit through a speculative move that we either win or lose. What we will do is create cryptocurrencies, so we will always win.”

Drovita also said the city intends to to pay taxes From his profits from the mining activity he carries out in the municipality area, explaining that:

“We have worked and done a lot of research on this project, which is a very broad project and it is related to economic knowledge to specifically improve economic development. The response was very immediate and significant with the collective participation of the public and private sectors, who did not hesitate to cooperate through economic and human resources. It is a test A trial in which we can get 60 or 70 thousand pesos per month depending on the fluctuations. One hundred percent of the profits will go to a local institution and that institution will have to submit a project that will be financed.”

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