A recent executive decree of the national government of Argentina granted the Mint the power to eventually be able to issue digital currencies and make other technological innovations related to digital money.
According to Decree 207/2022, published this week in the Official Gazette, the government added to the power to issue banknotes that the Mint had until now, the following functions:
- Carry out all kinds of activity directly or indirectly related to the evolution of the respective technologies, such as
- Capture and digital process of data, images, codes, sounds and microchips.
- Software design and development.
- Implementation of digital security.
- Teleprocessing of information, printing and/or recording of databases.
- Import, export and transmission of services related to these.
- Develop, manage and operate the necessary software
- Issue, renew, revoke and manage validations and digital certifications.
- Systems related to traceability, automation, data analysis, artificial intelligence and digital governance.
- Develop, manage and operate centralized and decentralized databases and transactional platforms of all kinds.
In the same way, the government will now be able to issue CBDC (central bank digital currency), which are tokens issued by national monetary authorities but registered on a blockchain. It is estimated that the government entity will be able to officiate as an exchange and will be the one who handles the issuance and sale of the tokens. According to the letter of the law, the entity may carry out the administration of transactional services such as:
- Management and execution of payments and/or collections on behalf of third parties through the use of electronic devices
- Transactional platforms or any other means.
- Carry out the management, administration and transmission of services and digital goods and the processing and digital exchange of data and accounts.
Although it is an initiative that it only generates a regulatory framework, it is estimated that it is the first step for Argentina to also add CBDC to its portfolio of public assets. Previously, the Productive Inclusion Foundation, a non-governmental institution in Argentina focused on the development of financial tools and other related activities, such as research, training, consulting and the execution of government projects, announced the development of a project that proposes the creation of a digital currency in the country, a CBDC. The proposal was presented to the Argentine Confederation of Medium-Sized Enterprises (CAME) and the Argentine Industrial Union (UIA), suggesting the digitization of 100% of the country’s national currency, the Argentine peso.
In the same way, the government of the City of Buenos Aires launched an initiative called “Buenos Aires+” to use technology in connection with different services of the city government. One of the most striking changes is that now it will be possible to pay taxes using cryptocurrencies and the use of blockchain in validating the digital identity of citizensso the Argentine government is no stranger to initiatives that include public services and blockchain technology.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.