Thursday, September 29, 2022

Argentina to “Discourage” the Use of Cryptocurrency in a Pending IMF Deal

The Government of Argentina has unveiled in a memorandum that it will discourage the use of crypto as one of the strategies in fulfilling its part of the requirements in closing a proposed deal with the International Monetary Fund (IMF). The agreement between the South American country and the international creditor will see that the latter gives the sum of $45 billion worth of debt restructuring facility to the former.

The said proposed deal with IMF is to ensure that provisions are made for Argentina’s “balance of payments and budget support to address the country’s most pressing economic challenges” so as to remedy the huge debt situation of the nation 

This recent development has been a matter of deep concern for the digital assets service providers in the country, owing to the fact that what the government means by “discourage” crypto has not been defined and they cannot really tell to which extent the proposed cryptocurrency regulation will affect them.

A statement as contained in the draft MOU shows the crypto policy will seek “to further safeguard financial stability, we are taking important steps to discourage the use of crypto-currencies with a view to preventing money laundering, informality, and disintermediation.” 

The connection of cryptocurrency trades with criminal activities such as money laundering and fraud in Argentina has raised questions from some crypto enthusiasts and digital assets service providers in the country. This is because the evidence of such illicit acts connected with Bitcoin (BTC) trades is yet to be put forward by the government.

With this concern in mind, an NGO named Bitcoin Argentina in a report had written an official request addressed to the Minister of Economy for Argentina, Martin Guzman in alliance with the provisions of a law that allows for access to public information, Law No. 27,275 requesting for the pieces of evidence gathered by the government as proofs that crypto trades is associated with money laundering as well as the intended policies that will be scripted to regulate the digital assets.

Several concerns have been raised about the influence of the IMF in Argentina’s draft, owing to beliefs that the former has reservations about the use of crypto and will stop at nothing to cut down its usage.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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