[topsearch__bar__shortcode]

Argentinian Government Passes $45M debt deal with IMF to discourage crypto

Related Topics

Facebook
Twitter
LinkedIn
WhatsApp

The Argentine Senate, the country’s upper chamber of parliament, has voted to approve a USD 45 billion debt deal with the International Monetary Fund (IMF), a move designed to keep Argentina from defaulting.

According to the local daily La Nación, the country’s government hopes that the package will allow Argentina to exit a long-running financial crisis. The vote makes the agreement into law, but it also includes a contentious provision that discourages the country’s population from using crypto assets.

In order to further protect Argentina’s financial stability, the country’s authorities have pledged to take significant steps to discourage the use of crypto assets, among other things, “with a view to preventing money laundering, informality, and disintermediation.”

However, the letter does not specify any specific methods that Buenos Aires could use to stymie the population’s embrace of cryptocurrency.

At the same time, Argentina’s government declares that it will continue to support the payment digitization process in order to improve the efficiency and costs of payment systems and cash management. This, however, does not include promoting the use of cryptocurrency, as implied by the previous statement.

The crypto provision is part of a Technical Memorandum of Understanding (TMU) signed by Buenos Aires with the international organization on March 3, which accompanies the letter signed by Miguel Pesce, President of the Argentine Republic’s Central Bank, and Martin Guzman, the country’s Minister of Economy.

According to the two officials, their plan is carefully calibrated to Argentina’s specific circumstances, particularly the challenging economic and social situation exacerbated by the global pandemic.

While commercial banks remain liquid and well-capitalized, strong bank oversight will be maintained, particularly in light of the removal of pandemic-related regulatory forbearance.

Leave a Comment

Your email address will not be published. Required fields are marked *

Crypto

Crypto News & Market Sentiment

The crypto market seems to be moving fully towards the road to recovery, as US economic data on inflation proved to be better than expected.

Crypto

Crypto News and Market Sentiment

The much-awaited interest rate hike by the US Federal Reserve had finally come to pass, with interest rates being raised by 75 basis points earlier

Crypto-Market Weekly News

After several tumultuous weeks, the cryptocurrency market is finally showing signs that indicate stability, to a large degree. The total crypto market cap presently exceeds

Latest Posts