The former president of the Central Bank and former Minister of Economy of Argentina, Domingo Felipe Cavallo, spoke about cryptocurrencies in a presentation he made via zoom on February 3, according to La Voz.
The comment was made at a meeting that aimed to address a very different issue: “the dollarization plan in the Venezuelan economy.” However, when asked about cryptocurrencies, the former minister manifested your opinion about it.
Cavallo mentioned that cryptocurrencies “can put a limitation on the inflation tax.” On this, he stressed that inflation is caused by “the exaggerated issuance – of banknotes in the Central Bank – and the indebtedness of the countries.”
As former president of the Central Bank, he indicated that this implies “a process of transforming the concept of currency” that is already taking place globally. As an example, he warned that this can be seen in El Salvador, where bitcoin has become a legal tender.
Although he pointed out that such a place is different from Venezuela, as well as from others in Latin America such as Argentina. Also, it should be noted that there are countries that could follow the path of El Salvador, such as Chile, where a proposal has been presented to make bitcoin a legal tender.
Following the same line, the former economy minister said: “I do not rule out that cryptocurrencies will be a means of payment in the future and may even serve for financial intermediation and take away space from other national currencies and even the dollar.” In fact, as indicated by data from a study carried out by Visa, people are already integrating its use in Argentina and other countries.
Cavallo spoke about inflation and the devaluation of national currencies
In response to another question, pointing out the irony of a Venezuelan humorist who compared the national currency to the use of toilet paper, Cavallo agreed with the idea. He stated that indeed there are “countries where the issuance of money can be compared” with that input.
The former official from Argentina stressed about the international situation: “some aspects will have to be rethought to adapt them to the current reality.” He stated that it is necessary to “carry out a reform of the State, reduce public spending to encourage efficiency” and generate “more redistributive spending.”
Cavallo is not the only former president of the Central Bank of Argentina who spoke about cryptocurrencies. As CriptoNoticias reported, so did Guido Sandleris, who fulfilled such a function and commented that he should have bought bitcoin for the country’s reserves before an IMF report.