Argentinian Central Bank Not Thinking About Issuing Cryptocurrencies

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After rumours around this possibility, Argentinian Central Bank Vice-president confirmed that they are not thinking about issuing a virtual currency. Argentinian Central Bank Vice-president, Lucas Llach, confirmed to CoinStaker that Argentina is not working in the development of a cryptocurrency. At least for the moment.

“We do not have the intention, at least the immediate intention, to issue a national cryptocurrency”, answered Lucas Llach to our question regarding the possibility of Argentina to issue its local virtual currency. His words clear up the doubts generated after the suggestions that the Argentinian Central Bank (BCRA) wanted to use Blockchain technology to develop a virtual currency.

Demian Reidel presenting Argentinian position on Cryptocurrencies

Argentina and the possibility of issuing a national cryptocurrency

Perfil, a local newspaper, covered a TED conference in which the Vice-President Second of the Argentinian Central Bank was present. In this meeting held in Buenos Aires, Demian Reidel, commented that lots of countries will decide to issue their own cryptocurrencies. “It is for sure that there will be more cryptocurrencies, much more than the ones we know today, and some of them will be issued by central banks from other countries”, he said.

Demian Reidel has also talked about one of the problems that decentralized cryptocurrencies bring with them. Criminals and drug dealers use this new technology, not controlled by central authorities in order to operate and carry out their illegal activities. But they do not only beneficiate with decentralized cryptocurrencies, but also with cash. “Although we associate the use of firearms with this problem, cash money is also an important weapon for these criminal groups”, he stated.

Demian Reidel, as well as Lucas Llach, believe that a cash-less world is the direction in which countries should move. About this, Reidel spoke in the conference saying that countries have been using cash money for more than 700 years. And now it is time to change.

Argentinian situation regarding cryptocurrencies

Argentina is known, specially, for its economic instability. High inflation and a currency that is not trustworthy could be good reasons to start to use Bitcoin. This famous cryptocurrency could be used not only as a means of payment, but also as a storage of value.

According to different media sources, in October, 2000 ATMs that work with cryptocurrencies will be installed in Argentina. The installation will be carried out by Odyssey Group US, an Argentine-American company. Odyssey Group US is one of the most important providers of Bitcoin ATMS in the US and plans to do it worldwide. If this will be effective, Argentina will be one of the countries with the highest presence of Bitcoin ATMs in the world.

Argentina is not in the list of countries with the most important Bitcoin trading volume. But it is experiencing a growth in the total amount of money moved by this cryptocurrency.

Argentinian Bitcoin Market Capitalization. Amount of Argentine Peso moved by the Bitcoin Market.

In 2018, Buenos Aires will host the G-20 summit. The fintech development will be one of the cornerstones of the meeting. Argentina is working hard since the last years to reduce cash use in the streets of this South American country. Lucas Llach has also mentioned that the BCRA does not pretend to regulate fintech technologies and enterprises in Argentina.

“In some time, cash will be as cassette players. Or as the stamps on the letters. We are not afraid of Bitcoin. There is already a bank using Bitcoin for transactions in Argentina and we believe it is good”, Llach commented.

At the moment, Kazakhstan, Russia and Estonia have the intention the issue national cryptocurrencies.