Agustín D’Attellis, the Director of the Central Bank of the Argentine Republic (BCRA), has publicly supported the promotion of a central bank digital currency (CBDC), referred to as the “digital peso” (PAD), as a remedy for the Argentine economy. D’Attellis believes that the traceability of CBDC transactions will help the state broaden its tax base and stabilize the economy.
The introduction of the digital peso is expected to address Argentina’s monetary challenges, where the local currency, the peso, often competes with the US dollar as a payment method. D’Attellis emphasized that the CBDC would be introduced gradually, coexisting with cash, with the final replacement of paper bills occurring at a later stage of the project.
The Digital Peso Solution: Argentina’s Central Bank Director Backs CBDC for Economic Stability
Sergio Massa, the acting Minister of Economy and a presidential candidate, pledged to launch a CBDC if elected to address Argentina’s persistent inflation crisis. The proposal comes in the context of a competitive election, with Massa slightly trailing Javier Milei, a pro-Bitcoin candidate who advocates adopting the US dollar as Argentina’s currency.
The introduction of a CBDC in Argentina reflects a growing global trend as central banks explore digital currencies as a means to modernize financial systems, enhance financial inclusion, and address economic challenges. However, the success and impact of such initiatives will depend on various factors, including regulatory considerations and public adoption.