It has come to the notice of experts that the Argentinean government has made its very first move towards introducing its own CBDC (Central Bank Digital Currency). As per a decree published on April 26 numbered 207/2022, the Argentinean mint has been given legal authority to involve itself in investigating, developing, and issuing digital currencies. Before this, the Argentinean mint only had the power or faculties to print the national fiat currency, the Argentine Peso.
In other words, the national mint has now been given the authority to watch over the capture and digital processing of data, sounds, codes, images, and microchips, software design and development, implementation of digital security, printing, and/or recording of databases teleprocessing of information.
Famous legal crypto counsellor, Rosendo Gravanago pointed out that the above development indicates the Argentina government is setting up the legal structure required for it to jump onto the CBDC adoption bandwagon.
This gives us the pattern that Argentina is trying to get into the CBDC trend, a trend that has been adopting centralized electronic fiduciary money-Rosendo Gravanago, legal crypto counsellor
Further, the decree enables the national mint to execute and manage payments and/or also enables it to do collections on behalf of third parties via the use of electronic devices, transactional platforms, etc.
From the above development, Gravanago further pointed out and stated to the media that:
With this regulation, the national mint is empowered to create a kind of central exchange.-Rosendo Gravanago, legal crypto counsellor
Hence, it’s now believed that the government is not only willing to introduce it’s own CBDC but also planning to establish a national centralised exchange with payment processing capabilities.
Why is the Argentinean government being so adamant regarding this?
Well, the answer is pretty simple, why wouldn’t a government like to have control over its economy by centralising a market whose sole purpose is to provide anonymity from any hierarchy including any government or law. Hence, dethroning the government from its autocratic rein of managing the public’s financial decisions. Further, there is also a high possibility of it being used for illegal reasons as it is hard to track.
In simple words, the government is following the old proverb- If you can’t beat them, join them. This simply means that the government has realised that it isn’t possible to ignore the crypto adoption revolution anymore and so, they must adopt it anyhow to stay in the adoption rate. However, as mentioned earlier crypto is anonymous and decentralised. So, it can’t be managed or tracked by the government easily. Hence, they have decided that in order not to lose control of the economy or also to prevent it from being used illegally, they must regulate it by creating their variation and adopting that which is the CBDC. The CBDC concept is based on the private Blockchain concept that can be easily tracked and managed by the issuing authority, Hence, giving the government total control over it.
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