Why an Argentinian Lawmaker Wants Central Bank to Integrate Bitcoin into Financial Systems

A proposal for the Argentine Central Bank to integrate Bitcoin could have a groundbreaking effect if the country’s parliament adopted a bill by one of its lawmakers.

A report in the local daily La Voz states that the bill proposed by Republican Proposal (PRO) lawmaker Martín Yeza would revolutionize the country’s financial systems and stay up to the changing times. The new law would allow the Central Bank of the Argentine Republic (BCRA) to “buy, hold, and mine” the digital asset. Should the proposal receive a green light, BCRA will also be responsible for commissioning crypto-mining projects. One of the reasons lawmaker Yeza wants the Central Bank to integrate Bitcoin has to do with its archaic regulations.

Central Bank of Argentina Holds a Tight Framework

While European nations have recognized the existence of cryptocurrencies and are gearing up to accommodate them through a set of rules under MiCA, the framework run by the Central Bank of Argentina has remained tight. Some Asian countries that held similar strict and suffocating roles surrounding the crypto space have started becoming accommodative to digital assets. While BCRA tries to promote stability, the existing crypto framework is anything but chaotic.

Buoyed by the recent election victory of a pro-crypto President in the United States, Bitcoin has shattered numerous price records and reached an all-time high of $93,000, with experts predicting it will exceed $100,000 by the end of 2024. Lawmaker Yeza proposes in his bill that the Central Bank integrate Bitcoin so the country can join the rest of the world that has already embraced Bitcoin and other cryptocurrencies. The PRO deputy feels it’s time for the country’s Congress to allow BCRA to modify its charter and recognize crypto.

BCRA Already Signaling Willingness to Change

Advertisement Banner

Yeza’s proposal for the Central Bank to integrate Bitcoin into the country’s financial systems comes at a time when the South American nation is at a crossroads. While the world of Fintech in general and crypto in particular are growing, the Central Bank of Argentina doesn’t allow banks to offer any crypto services. The prohibitions feel a little bit stifling for most Argentinians, especially because most have lost faith in their local currencies and prefer using cryptocurrencies or the US dollar because of economic instability and runaway inflation. Under the current BCRA law, cryptocurrencies are referred to as an “unregulated financial asset.”

In the meantime, the Central Bank of Argentina has started sending signals towards the possibility of change. BCRA recently invited members of the public to consider the future value of the currency with a proposal to transition from using fiat currency to decentralized, blockchain-based currencies. The Central Bank of Argentina held a groundbreaking exhibition on October 31, 2024, dubbed “Art, Artificial Intelligence, and the Future of the Economy.” The exhibition had the bank’s Historical Museum, which became the first for any central bank globally to showcase world-class crypto mining technologies as a way of exploring the transformation of money.

Willingness to Engage and Not Resist Change

By boldly choosing to showcase developments within the decentralized finance and cryptocurrency sectors and inviting public opinion, the Central Bank of Argentina has shown the willingness to explore decentralized systems and how they can be integrated within contemporary centralized institutions. Such a remarkable shift would anchor well with the lawmaker’s challenge for the Central Bank to integrate Bitcoin and crypto as an anchor of financial control. The Central Bank of Argentina seems to have already shown a willingness to engage and not resist dynamic changes occasioned by the integration of blockchain and artificial intelligence.

Conclusion

As a country that has recently had to deal with a high level of inflation and the local currency’s volatility, Argentina could be well positioned for the challenge of the Central Bank to integrate Bitcoin within its financial systems. Most Argentinians are already attracted to crypto, which they consider an alternative to their local currency. The government’s support for the proposed bill by Yeza would hold the key to embracing rather than sidelining technology. It could open the way to navigating current and future economic challenges.

Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!