How Keen Is Argentina On Crypto Adoption?

Recently, at a Beijing meeting, Felix Martin Soto, the Deputy Minister of Finance for Argentina, commented that the Argentine government should focus on developing crypto and blockchain technology for promoting financial inclusion and cutting costs in the country, while also bringing down the demand for US Dollars.

Earlier this week, senior officials from the Finance Department in Argentina also met with Leon Li, the CEO of the Huobi group (known for the top cryptocurrency exchange of thetsame name that they own). Famous venture capitalist Tim Draper also recently advised the Argentine government, during a meeting with the country’s President, to embrace Bitcoin as national currency. Clearly, Argentina’s interest in crypto seems to be peaking.

Mr. Soto, who is responsible for Argentina’s financial relations internationally, explained that a major chunk of the country’s population do not have access to bank accounts. Instead, they carry out cash transactions by converting whatever they have in savings, to US dollars.

He stated his belief that if the country starts promoting the use of cryptocurrencies, then the demand for USD will likely come down. This will help bring a certain degree of stability to the local market, and possibly attract attention from global investors.

The Argentine finance officials, along with Javier Matias Mana, the Director-General of the Bilateral External Finance Bureau, had a delegation meeting, wherein they also deliberated upon seeing a prospective expansion of Huobi from China to Argentina. In that context, Minister Soto explained:

“We would like to learn how to participate in cryptocurrency and blockchain industry from Huobi. […] Through tokenization on Huobi’s platform, for example, Argentina’s plentiful agricultural, mineral and energy resources could be well financed by global investors.”

He also noted that:

“[w]ith Huobi’s expertise in blockchain and cryptocurrency, Argentina can accelerate its pace to digital assets era.”

Argentina seems to be taking its crypto expansion plans quite seriously and we hope it will soon come up with a comprehensive plan to realize the benefits of crypto adoption.