Going cashless seems to be of the utmost importance to some countries around the world for some reason. While it may make sense for some countries to do so, Argentina would not necessarily be on that list. Then again, the country wants to revamp the banking system, but what will that mean for Bitcoin?
A Cashless Argentina Wouldn’t Solve The Problem
One of the biggest problems the Argentine economy has right now is the hyperinflationary Peso. The Central Bank keeps printing new money to create some form of stability in the country, but their action has an adverse effect. However, the situation may come to change shortly, as the Central Bank of Argentina is favoring going cashless altogether.
This may sound like a strange decision, considering how a lot of people have no access to credit cards or bank accounts in the country to begin with. In fact, the majority of people have to deal with cash, and given the extremely volatile exchange rate, something has to change.
Moreover, going cashless would not solve the inflation problem in the country either. The central bank would remain in control over consumer funds, but even fewer people would have free access to their money in the first place. What is needed is a realignment of the monetary policy in the country, as well as a modernized banking system.
This train of thought is commendable, but it will take a lot more than cheap words to change the financial system in Argentina. The Central Bank will not give up monetary control anytime soon, and giving more consumers access to bank accounts, and credit cards would mean a lot more work for them to manually verify applications.
Bitcoin is a more than viable alternative for most Argentines, as there are no requirements for personal information when opening a Bitcoin wallet. Additionally, there are no central banks or governments involved when using the cryptocurrency, and it can be easily exchanged to local or foreign currency on the market.
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