Argentina has started to look into Bitcoin to fight inflation. The flagship cryptocurrency first caught the interest of President Fernandez in August 2021. In the last few years, the citizens of the South American country have constantly battled with an exponential rise in the prices of goods and services.
Bitcoin has been tipped as one of the best assets to combat inflation.
In July 2021, Jose Luis Ramon, an Argentine National Deputy, proposed a bill to pay the salaries of Argentines with Bitcoin.
The following month, President Alberto Fernandez announced that the nation’s central bank had plans to create its digital currency and was considering using Bitcoin and other crypto-assets.
However, at the moment, these plans to adopt Bitcoin on a larger scale have been hit with some obstacles. The Argentine government signed an agreement with the International Monetary Fund (IMF) to promote economic and financial stability.
The agreement forced the Argentine government to discourage citizens from using cryptocurrencies due to the risks involved and the volatility of crypto assets.
Following the deal with the IMF, prominent industry players criticized the government for being feeble and succumbing to slight pressure.
Despite this setback, many citizens of the Nation are still strong advocates of Bitcoin and cryptocurrencies. Juan Pio Drovett, a Mayor in Santa Fe, Serodino, believes that Bitcoin mining will go a long way in boosting the region’s GDP and the nation at large.
Early in April, 6000 inhabitants of the Santa Fe municipal contributed to purchasing several graphics cards for mining Bitcoin. The Mayor emphasized that the municipal only intends to mine crypto rather than trade due to the high risks.
Taxes will also be paid from the municipality’s profit accrued through Bitcoin mining. It is believed that the gains made through crypto mining will boost the city’s GDP.