July 10, 2024
Argentine Central Banker Believes CBDC Will Enhance Tax Collection
Latest Cryptocurrency News

Argentine Central Banker Believes CBDC Will Enhance Tax Collection

Juan Agustín D’Attellis Noguera, a director of Banco Central de la República Argentina (the central bank of Argentina), has publicly endorsed the Minister of Economy Sergio Massa’s promotion of a central bank digital currency (CBDC) as a potential solution for the country’s economic challenges.

During a television appearance, Noguera expressed his belief that the “digital peso” could play a significant role in stabilizing the Argentine economy, possibly as early as 2024. He emphasized one key feature of the CBDC: its traceability. Noguera argued that the CBDC’s traceability could help the government collect taxes more effectively, saying:

“By having traceability of operations with a digital currency because it is not known who does them, but there is evidence that they were done, you broaden the tax base. This will allow you to raise more without having to raise taxes and even lower them.” 

In addition to addressing tax collection, Noguera asserted that the CBDC would help address Argentina’s monetary challenges. The country has experienced significant inflation, and the Argentine peso often competes with the United States dollar as a means of payment.

Noguera spoke with confidence about the digital peso, stating that its introduction would be gradual, coexisting with physical cash. The full replacement of paper fiat currency would only occur in the final stages of the CBDC project.

On October 2, Sergio Massa, who also serves as a presidential candidate, made a commitment to launch a CBDC if elected, with the aim of addressing Argentina’s persistent inflation crisis. Notably, election polls indicate that Massa is slightly trailing Javier Milei, a pro-Bitcoin and anti-central bank candidate who advocates for adopting the U.S. dollar as Argentina’s official currency.

Image by www.slon.pics on Freepik

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