Sunday, October 2

“We should have bought bitcoin”: former president of the Central Bank of Argentina

Key facts:
  • Had he known the future, he would have bought BTC with Central Bank reserves, Sandleris estimated.

  • Sandleris was president of the Central Bank of Argentina from 2018 to 2019 during the Macri government.

The former president of the Central Bank of Argentina (BCRA), Guido Sandleris, alluded to bitcoin (BTC) while giving his opinion regarding the report published on December 23 by the International Monetary Fund (IMF). In that document, he evaluates the loan made to Argentina in 2018, that is, three years ago.

“A problem with the report is to analyze everything with the Monday newspaper”, declared on his Twitter account Sandleris, who was the president of the Central Bank at the time. The former official, with the expression “Monday’s newspaper” made reference to how easy it is to comment on a situation long after the events have already happened.

Sandleris detailed the idea by saying: “decisions must also be evaluated with the information available at the time of making them.” He then added: “With the Monday newspaper, for example, we should have bought bitcoins with the reserves and that’s it.”

Buying bitcoin would have allowed Argentina to enrich its Central Bank reserves with the price increase that the cryptocurrency had since then. At the beginning of 2018, BTC was worth $ 15,321, while now it is trading at $ 51,022, as revealed by the CriptoNoticias calculator.

Analysts recommend Argentina to buy bitcoins for years

Although no one has the magic ball to know where the price of bitcoin was going to go, for years different analysts have recommended the Argentine government to buy the cryptocurrency.

One of them was Santiago Siri, who is CEO of DAO Education, a school on blockchains and cryptocurrencies. Seven years ago, in 2014, Santiago Siri wrote a open letter to the government and the Central Bank of Argentina: “Let’s put 1% of the reserves in bitcoin.”

Guido Sandleris believes that buying bitcoin would have been a way to enrich the value of the reserves of the Central Bank of Argentina. Source: twitter

“If Argentina places a minimum fraction of its reserves in bitcoin, it would instantly become a dominant player in the international financial system that will become increasingly relevant in the future,” he declared at the time.

The developer warned in 2014: “The opportunity to make that bet is now.” And he added: “as never before in history, we are one step away from being able to begin to think of ourselves as a country that is a locomotive of innovation if the necessary political will is achieved.”

“I know well the voice of the skeptics: I argue daily with tweeters who argue that they googled. But the truth is that Bitcoin has been gaining a lot of strength in its arm wrestling. Tim Draper, one of the most respected investors in Silicon Valley, affirmed that the safest money he has is in the form of Bitcoin and that his main obsession is to work for its massification. “

Santiago Siri, IT developer, in 2014.

Billionaire investor Tim Draper is yet another person who recommended using cryptocurrency to the Argentine government. Precisely in 2019, Tim Draper advised changing the Argentine peso for bitcoin to avoid the devaluation of the currency and the flight of Argentines and companies to other countries.

This is what he personally told Mauricio Macri, who was president at the time. The investor promised at that time that he would double his investment in the country if the Argentine peso was valued more than bitcoin over time, something that he believed would not happen, so he made a bet on the president.

As reported by CriptoNoticias, Tim Draper told Mauricio Macri in 2019 that he would have to make the cryptocurrency official if its price increased more than the Argentine peso. Since then, Argentina’s currency has devalued 75% (against the US dollar) and bitcoin has grown more than 1,300%.