Miguel Pesce hints at Regulation of bitcoin in Payment Systems

Central Bank of Argentina President Suggests Bitcoin Can Be Regulated in Payment Systems

Miguel Pesce, head of Argentina’s Central Bank, hinted at the possibility of bitcoin transactions being regulated in the near future. Pesce also emphasized yesterday at a digital finance conference that the bank was trying to develop effective methods of alerting inexperienced investors about the risks associated with investing in cryptocurrencies such as bitcoin.

In a digital financial conference hosted by the Argentine Institute of Finance Executives, Miguel Pesce, Argentina’s current Central Bank President, hinted at the possibility of regulating bitcoin and bitcoin transactions. Pesce said yesterday that it was critical for them to avoid tying bitcoin to the conventional exchange market. According to Pesce:

“We are going to regulate the intersection of Bitcoin with the payment system and the exchange market.”

According to Pesce, Bitcoin is not a financial asset since it is not backed by any asset and thus cannot guarantee a steady return. He ascertains, however, that its scarcity enables the price to continue increasing, creating the illusion that it is a financial asset. He said as follows: The fact that these instruments may be utilized for transactions has no effect on the Central Bank.

Not Beneficial for the Foreign Exchange Market

However, the banker implied that these products might be exploited to defraud inexperienced investors. As a result, Pesce believes that if the money generated by cryptocurrencies is combined with the conventional exchange market, a very unjust impact may result. He said that Argentina’s central bank would make every effort to prevent this. Pesce said that such intermingling may be “very detrimental” to both the instrument and the Central Bank’s rules.

The Central Bank of Argentina, on the other hand, is focused on achieving widespread digitization of its payment systems and is relying on the convergence of conventional banking and fintech firms to accomplish that objective. To this aim, it is pushing a new wire system dubbed “Transferencias 3.0” that it hopes will increase the country’s use of digital currency.

Argentina is still a cash-strapped nation. Because cash accounts for more than 90% of transactions in the country, the bank has the issue of upgrading this system to make payments simpler. Pesce, on the other hand, said that they were not intending to create digital money for this purpose.

Also Read: Iran’s Tax Administration Promoting Crypto Exchange Legalization