• NGO Argentina requested information and the Central Bank of Argentina replied.
• Responding, the issuing authority stated that it was necessary to monitor the cryptocurrency industry.
• The document does not recommend any concrete action to stop or discourage adoption of cryptocurrency in the country.

BCRA, the Central Bank of the Argentine Republic clarified that the recent mention of cryptocurrencies by the government in the Memorandum of Economic and Financial Policies with the International Monetary Fund is not the axis of the program.

After the Ministry of Economy received a request from the NGO Bitcoin Argentina for information, the Ministry of Economy decided to clarify the issuing entity. The government was requested to access the public document that contained the details of the IMF-signed debt refinancing arrangement for over $45,000,000,000.

A formal complaint was filed by the NGO against the Ministry of Economy regarding administrative silence. This request was then passed to the Central Bank for response. The body responded two months later by denying that the goal of the agreement is to discourage the use of Bitcoin and other crypto assets as part of the “Strengthening financial resilience” policies.

In the technical document that is part of the agreement signed with the IMF, there is a section that raises the need to “discourage the use of cryptocurrencies with a view to preventing money laundering, informality, and disintermediation.”
After the content of the document was revealed during its discussion in parliament, the Argentine crypto community made public its disappointment and rejection of the IMF request, while requesting a formal clarification from the government of Alberto Fernández.

The Argentine Central Bank has said that Bitcoin and other cryptocurrencies represent a potential risk for users and for the financial system given their volatility, for which it recommends that they be “constantly monitored.”

Arguments for the BCRA

In its response to the NGO Bitcoin Argentina, the BCRA also emphasizes the risk of cryptocurrencies due to “the cross-border nature of these assets, the fact that they are not considered legal tender, the high levels of volatility in their prices and the variable levels of backing in fiat currency.”
The bank’s arguments are based on reports submitted by international financial sector organizations such as the IMF, the Bank for International Settlements (BIS), the Financial Stability Board (FSB), and the Financial Action Task Force (FATF).

The NGO tweeted a message in which it is satisfied with the response given by the Central Bank, where it states that there is still a lot of work ahead in the Argentine cryptographic ecosystem so that “more and more people and institutions can understand the potential of Bitcoin blockchain and the crypto industry.”

To The Flipside

• The IMF requested anti-Bitcoin measures for Argentina as part of its debt refinancing arrangement with South America.
• The BCRA states that cryptocurrencies do not have state support or protection and are “exposed to operational disruptions and cyber attacks.”
• Recent months have seen the IMF raise its opposition to cryptocurrencies, presenting them as potentially dangerous assets and pointing out CBDCs.

What You Need to Care About

• The Fund also promotes the issue of digital currency central banks (CBDC) within its member countries.
• The Argentine government and BCRA have been cautious about cryptocurrency use.

The document states that the BCRA adopted a prudent approach, based on the continuous follow-up of international experience, discussion and publication in forums and organisations at a global scale and other public information resources specialized in this matter.
They are not sure what kind of future measures they will take “to reduce uncertainty, anchor exchange rate expectations-for which agreement with IMF will contribute- and reconfiguring their monetary policy instruments to support the recovery and strengthen monetary stability.

Continue reading on DailyCoin