Juan Agustín Datlis Noguera, the director of Argentina's central bank, has publicly endorsed Economy Minister Sergio Massa's advocacy for a central bank digital currency (CBDC) as a solution to the country's economic challenges.
Noguera expressed his belief that a "digital peso" could potentially contribute to stabilizing Argentina's economy as soon as 2024. He highlighted that the primary advantage of a CBDC is its traceability, which could enable the government to enhance tax collection:
"By making transactions with digital currencies traceable, even though the parties involved are anonymous, there is evidence of these transactions. This expanded traceability can broaden the tax base, allowing for increased revenue collection without the need to raise taxes, and possibly even reducing them."
Noguera emphasized that a CBDC could also address Argentina's currency issues. The Argentine peso, known for its instability, often competes with the U.S. dollar for use as a means of payment.
Noguera outlined the digital peso's gradual introduction, intending for it to coexist with physical cash and ultimately replace traditional fiat currency.
On October 2, presidential candidate Massa pledged to launch a CBDC to address Argentina's persistent inflation problem if elected. Massa is currently trailing behind Bitcoin supporter Javier Milei in election polls, along with anti-central bank candidates advocating for the adoption of the U.S. dollar as Argentina's official currency.
