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The president of Argentina’s central bank says that CBDC will increase tax collection.

In a high-profile declaration of support, Agustín D’Attellis, the Director of the Central Bank of the Argentine Republic (BCRA), threw his weight behind Minister of Economy Sergio Massa’s advocacy for the adoption of a central bank digital currency (CBDC) as a panacea for the nation’s economic woes.

D’Attellis, during a televised appearance, articulated his conviction that the “digital peso” (PAD) held the potential to restore stability to the Argentine economy, with a timeline as early as 2024. He emphasized that the CBDC’s distinguishing feature lay in its traceability, a feature that would enable the government to expand its tax base. In his words, “Through the traceability of transactions facilitated by a digital currency, we can identify the parties involved, thereby broadening our tax revenues. This, in turn, could lead to reducing, or at least not increasing, tax rates.”

Beyond its fiscal implications, the PAD also offers a viable solution to Argentina’s ongoing monetary quandary. The local currency, the peso, perpetually vies with the American dollar, even in the realm of everyday transactions.

D’Attellis spoke with unwavering certainty about the “digital peso’s” introduction. He affirmed that its rollout would be gradual, coexisting harmoniously with physical currency until the final phase, where paper bills would gracefully step aside.

Turning the spotlight to October 2nd, Sergio Massa, serving as both the acting Minister of Economy and a presidential candidate, pledged to launch a CBDC if elected, in a bid to “resolve” Argentina’s persistent battle with inflation. The political arena indicates that Massa finds himself in a close race with Javier Milei, an advocate for Bitcoin and a staunch opponent of central bank policies. Milei envisions adopting the United States dollar as Argentina’s official currency, setting the stage for a riveting electoral showdown.

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