Recently, the Bank of Finland has taken a proactive step to create an instant digital payment solution in line with European standards. It has been observed that not only tech giants but also central governments are making moves into the digital revolution.
Central Bank of Argentina takes swift action on digital Peso
The Central Bank of the Argentine Republic has accelerated its efforts to introduce a Central Bank Digital Currency (CBDC). During a discussion on local news channels, the Central Bank director, Juan Agustín D’Attellis Noguera, disclosed that the country is taking significant steps toward implementing the digital peso.
Legislative framework for the digital Peso
Noguera announced that the central bank is actively developing the legislative framework for the digital peso CBDC project, which was initially proposed by Minister of Economy and presidential candidate Sergio Massa. The goal is to present this project to the Congreso de la Nación Argentina, the country’s parliament, as soon as possible.
He also praised Massa’s approach to the CBDC, which aims to address Argentina’s persistent inflation problem. However, he criticized the stance of other presidential candidates, including Javier Milei, who supports the “dollarization” of Argentina’s economy and opposes the central bank’s role in economic affairs.
Enhancing tax collection through CBDC traceability
It has also been observed that Noguera has consistently advocated the idea of a CBDC, claiming that a digital peso could contribute to stabilizing the Argentine economy as early as 2024.
On the other hand, he highlighted the key advantages of the CBDC, such as its traceability, which could enable the government to streamline tax collection.
Meanwhile, Sergio Massa has committed to introducing a digital peso if he secures victory in the election. Recent polls indicate that Massa is in a tight race with Javier Milei, who proposes adopting the United States dollar as Argentina’s official currency and reducing the central bank’s involvement in the economy.
The Central Bank of Argentina’s continued focus on the digital peso represents a significant step in leveraging technology to address economic challenges, with the CBDC poised to play a crucial role in the country’s financial landscape.