President of Argentina Open to CBDC Adoption but Central Bank Says No

Richard Marley
August 13, 2021
3 minutes read
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Alberto Fernandez, President of Argentina showed openness to adoption of Bitcoin and Central Bank Digital Currency (CBDC) but the country’s central bank said no.

During an interview with Caja Negara, a local media outlet, the President said that there’s no reason to say no to emerging asset classes. In addition to this, Fernandez was in favour of exploring a CBDC or recognising a Bitcoin as legal tender as El Salvador did earlier this year.

Alberto stated,

“I don’t want to go too far out on a limb […] but there is no reason to say ‘no’.” He added: “They say the advantage is that the inflationary effect is largely nullified.”

Inflation was among the top concerns for the former president of Argentina, Mauricio Macri. As per the data revealed by the government, 100 Argentine Pesos from when Macri left office in 2019 would be equivalent to 661 Pesos today.

Argentina’s leaders are divided on digital assets, with President Fernandez contemplating crypto as a hedge against inflation even as the central bank head threatens to crack down on the sector. https://t.co/Nqajx3IhzM

— Cointelegraph (@Cointelegraph) August 13, 2021

The current president noted increasing perceptions of Bitcoin as a hedge against inflation in the border global economy despite Argentina’s tight currency control in the country. However, Fernandez stated,

“There is caution because of how unfamiliar it is, and because it is hard to understand how this fortune materializes. Many people in the world have these concerns, and that is why the project, or the system, has not yet expanded [more than it has]. But it is something to consider.”

Although the country’s president is open to digital asset adoption, the central bank’s head, Miguel Pesce, threatened a crackdown on the crypto sector. While addressing at the Argentine Institute of Executive of Finance’s Digital Finance Forum on August 10, Miguel targeted digital currencies as a threat to economic stability and foreshadowing stricter regulations for the crypto industry.

The head of the central bank also said that Bitcoin is a commodity and not a financial asset as defined by the National Securities Commission of the country. Moreover, he dismissed the suggestion to explore a CBDC.

Reports from May reveal that citizens looked to take advantage of soaring crypto prices and cheap electricity and resulted in an increase in cryptocurrency mining. During the same month, the central bank issued warnings to all the residents regarding the risks associated with crypto assets.

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ASIC Expands its Team to Enhance Cryptocurrency Regulations
Australia’s financial regulator has enhanced the size of its crypto team. The crypto regulatory measures include their application for financial services licenses and show that specific crypto platforms have particular liquidity in reserve.

After shifting popular blockchain from a proof-of-work (PoW) to a proof-of-stake (PoS) system, ASIC, Australia’s financial regulator, has increased the size of its crypto team.

U.S. Security and Exchange Commission Chairman Gary Gensler stated that PoS-based tokens might be classified as securities.

The decision of ASIC to keep PoS tokens for example Ethereum, Cardano and Solana under its remit will further clarify the situation and enable crypto regulations to be more effective. To cope with the latest regulatory reforms, the crypto exchange must either delist the tokens or start complying with robust crypto laws.

Such moves may force a few crypto firms to manage their operating models. Even the largest stablecoin of the crypto market, Tether, has been caught in a controversy created over the failure of holding enough dollar reserves to back the stablecoin.

The crypto regulatory measures include their application for financial services licenses and show that these platforms have particular liquidity in reserve.

The final decision by the regulator has not been issued yet. Greg Yanco, the executive director for marketers, said that ASIC won’t be a “cheerleader for crypto assets.”

SEC Newgate carried out research the last November. It showed that 44% of Australian retail investors reported holding crypto. Out of these investors, only 20% viewed crypto as high-risk.

The chairperson of ASIC responded and said that the regulators were “concerned that there are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulating crypto-assets to better protect investors.”

According to Yanco, until the last year, cryptocurrency was not such a high priority. Still, due to the decline of cryptocurrency in the previous few years and investors wiped out around the globe, ASIC expanded its team. It made crypto one of its “core strategic projects.”

Suggested Read: Regulatory Authorities to File a New Bill to Secure the Citizens from Cyber Criminal Activities

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All the digital service providers particularly financial companies, educational institutions, and immigration departments are at high risk of document fraud. The criminals use forged documents to claim funds, admissions to universities, or entry to foreign countries. By implementing standards of forensic forgery detection, all online businesses can secure their onboarding system with very less risks of scams. The forensic authentication of documents involves scientific techniques to verify the identities of users leaving no room for criminals.

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Forensic document verification involves incorporation of scientific rules in examining the authenticity of records. There are experts in this field who carry out all the operations using specialized methods. Nowadays, the use of forensics is rising, especially in courts where no document is accepted without authentication. By using several techniques like handwriting identification, ultraviolet light sources, microscopes, photography, and infrared imaging in the laboratories, a document is verified. All the major jurisdictions have formed dedicated institutions which overlook the process of document verification. The American Board of Forensic Document Examiners (ABFDE) is the primary authoritative body responsible for monitoring forensic operations in the US, and any person carrying out these activities anywhere in the country must be a member of this board.

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Canada

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President of Argentina Open to CBDC Adoption but Central Bank Says No

Forensic Document Verification – A New Standard

How Forensic Document Verification is Carried Out?

High-Profile Crime Cases of Document Fraud

Gang Arrested for Printing Fake Documents in Greece

Criminal Network Busted for Distributing Fake Documents

Regulatory Authorities Monitoring Document Fraud

Canada

Australia

Document Forgery Forensic Authentication – Ensuring KYC Compliance

What Shufti Pro Offers?

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Let’s prove your customer’s

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