Argentina President Alberto Fernandez has indicated support for digital assets, asserting in that location is no reason to push dorsum against the emerging asset class.

During an interview with a local media outlet, Caja Negra, on Th, Fernandez responded to a question about whether he would consider exploring a central bank digital currency (CBDC), or fifty-fifty recognize Bitcoin as legal tender every bit El Salvador did earlier this yr.

"I don't desire to get too far out on a limb [...] but in that location is no reason to say 'no'," Fernando stated, adding: "They say the advantage is that the inflationary consequence is largely nullified."

Inflation was a defining issue for the administration of Argentina'due south previous president, Mauricio Macri. Government data indicates that 100 Argentine pesos from when Macri left office in 2022 would be worth the equivalent of 661 pesos today.

Despite Argentina's tight currency controls, the electric current President noted increasing perceptions of Bitcoin (BTC) as a hedge against inflation in the broader global economy. Even so, Fernandez also cautiously noted that it is still very early on days for the cryptocurrency sector:

"There is circumspection because of how unfamiliar it is, and considering it is difficult to empathize how this fortune materializes. Many people in the world accept these concerns, and that is why the projection, or the system, has non yet expanded [more than it has]. Simply it is something to consider."

Despite the president's openness with exploring digital assets, the head of Argentine republic's primal bank, Miguel Pesce, appears to be threatening a crackdown on the industry.

Speaking during the Argentine Constitute of Executive of Finance's Digital Finance Forum on Tuesday, Pesce took an aim at cryptocurrency, characterizing digital assets as a threat to economic stability and foreshadowing tighter regulations for the sector.

During the upshot, Pesce asserted that BTC fails to generate value for investors outside of short-term hype cycles. The primal banking company head also likened Bitcoin to a commodity, final that BTC "is non a financial asset" equally defined by the country's National Securities Commission.

Pesce expressed his intention to "regulate the intersection of Bitcoin with the payment arrangement and exchange market," warning that the cryptocurrency "could be very detrimental" for domestic financial stability.

In regulating the sector, the key bank wishes to prioritize "preventing low-sophistication investors" from engaging the crypto assets, with Pesce stating:

"Nosotros are concerned that (cryptocurrencies) are used to generate undue profits on unsuspecting people."

Pesce also dismissed the proffer that Argentina would explore a key bank digital currency (CBDC).

Related: Written report: Amidst pullback, Argentine Bitcoin miners thriving

In May, reports indicated that retail cryptocurrency mining was flourishing in Argentina as citizens looked to take reward of cheap electricity and soaring crypto prices. That aforementioned month, the central depository financial institution reiterated warnings to Argentinians regarding the risks associated with crypto assets.

The previous calendar month, Canadian mining house Bitfarms advanced its roadmap for Argentine expansion, estimating its forthcoming Argentine facility will reduce its production costs by 45%.