ARGENTINEAN LAWMAKER WANTS TO SEE A STATE-BACKED CRYPTO

Argentina, a nation grappling with economic instability and a fervent embrace of cryptocurrency, finds itself at the crossroads of innovation and regulation.Amidst soaring inflation and restrictions on accessing hard currency, Argentinians have flocked to digital assets as a means of preserving wealth and transacting freely.Data suggests that the country has seen substantial crypto transaction volume, highlighting its position as a significant crypto haven.Now, an Argentinean lawmaker is exploring the possibility of launching a state-backed cryptocurrency, a move that could potentially reshape the nation's financial landscape.This proposal comes at a turbulent time, shadowed by the recent collapse of a cryptocurrency promoted by President Javier Milei, raising questions about government involvement in the volatile crypto market.This initiative is being considered by Martin Yeza, an Argentinean lawmaker, and is in its infancy but potentially could lead to regulation changes. Josefina Canale, eine argentinische Gesetzgeberin, hat ber ihren pers nlichen Twitter-Account erkl rt, sie unterst tze die Entwicklung einer exklusiven Kryptow hrung f r die Stadt Mendoza. Diese soll von der lokalen Regierung unterst tzt und berwacht werden. Die Gesetzgeberin f gt hinzuBut, can a government-backed crypto truly offer stability and trust in a nation already deeply involved with decentralized digital currencies? Argentina's President Javier Milei faces impeachment threats after touting a crypto token that supposedly helped small businesses, but instead crashed in value.Or will it face the same pitfalls as previous ventures and further erode public confidence?

The Push for a National Crypto: Addressing Argentina's Economic Woes

The idea of a state-backed cryptocurrency in Argentina isn't entirely new.Several figures, including former central bank officials, have floated similar proposals in the past.The rationale behind these initiatives stems from the desire to address Argentina's persistent economic challenges, particularly high inflation and limited access to foreign currency.Proponents argue that a national crypto could offer several benefits:

• Reduced reliance on the US dollar: By creating a digital currency independent of the dollar, Argentina could potentially mitigate the impact of fluctuations in the dollar's value and reduce its vulnerability to US economic policies.
• Increased financial inclusion: A state-backed crypto could provide access to financial services for the unbanked population, particularly in rural areas, who may lack access to traditional banking infrastructure.
• Enhanced transaction efficiency: Digital transactions can be faster and cheaper than traditional methods, potentially boosting economic activity and reducing transaction costs.
• Greater control over monetary policy: A national crypto could give the government greater control over the money supply and allow it to implement more targeted monetary policies.

However, the path towards implementing a national crypto is fraught with challenges. In the last year, Argentina saw $85.4 billion worth of crypto transactions, making it one of the largest crypto havens in the world, according to data platform Chainalysis, as Argentines seek toThe success of such a project hinges on several critical factors, including public trust, technological infrastructure, and effective regulation.

Martin Yeza's Vision: Inspired by Blockchain Innovation

Argentinean Lawmaker Martin Yeza, the driving force behind the current initiative, has publicly expressed his ambition to see the development of a state-backed crypto.He has stated the need for legal reform, emphasizing that Bitcoin, with its decentralized nature, differs fundamentally from government-issued currencies.He has also acknowledged his inspiration drawn from Santiago Siri, an Argentine entrepreneur and blockchain specialist. Argentina s Chamber of Deputies has approved a formal investigation into the LIBRA memecoin scandal after the token s collapse wiped out over $280 million in value from nearly 75,000 traders. In a special session held Apr. 8, lawmakers backed three resolutions aimed at uncovering the truthYeza's engagement suggests a willingness to learn from experts and to explore the possibilities that blockchain technology offers in addressing Argentina's financial needs.

Learning from Global Examples

The concept of a state-backed crypto is not unique to Argentina. Argentina's new president Javier Milei gestures at the crowd from a balcony of Casa Rosada Presidential Palace during his inauguration, in Buenos Aires on Decem.Several countries around the world are exploring or have already launched their own central bank digital currencies (CBDCs).For example:

• China: The Chinese government has been piloting its digital yuan (e-CNY) for several years, aiming to eventually replace physical cash.
• The Bahamas: The Bahamas launched its Sand Dollar in 2020, becoming one of the first countries in the world to issue a CBDC.
• Nigeria: Nigeria launched its eNaira in 2021, but its adoption has been limited due to various challenges.

Argentina can learn from the experiences of these countries, both the successes and the failures, to develop a national crypto that is tailored to its specific needs and circumstances. An Argentinean lawmaker has been studying the possibility of bringing a government-backed Argentinean Lawmaker Wants to See a State-Backed Crypto high-quality journalism across the cryptoThis includes careful consideration of the technological infrastructure, regulatory framework, and public awareness campaigns necessary for successful implementation.

The Shadow of the LIBRA Scandal: A Cautionary Tale

The enthusiasm for a state-backed crypto in Argentina is tempered by the recent scandal involving the LIBRA memecoin, a cryptocurrency that was heavily promoted by President Javier Milei before its sudden collapse. The Cato Institute raises concerns over Fincen's new reporting regulations, signaling a threat to financial privacy. As governments tighten their grip, couldThe collapse wiped out over $280 million in value from nearly 75,000 traders.This incident has triggered a formal investigation by Argentina's Chamber of Deputies, raising serious questions about the role of government officials in promoting potentially risky digital assets.Legal filings suggest that Milei's endorsement contributed to the rapid rise and fall of LIBRA, misleading investors into believing it was a government-backed initiative.

The LIBRA debacle serves as a stark reminder of the risks associated with government involvement in the crypto market. Ohio State Representative Derek Merrin has introduced legislation to create a state-backed Bitcoin reserve. The proposal involves investing surplus funds in Bitcoin as a hedge against dollar devaluation. Today, I filed HB 703 to create the Ohio Bitcoin Reserve within the state treasury! The billIt underscores the importance of transparency, due diligence, and clear regulations to protect investors and prevent similar incidents from happening in the future.

Consumer Protection and Regulation: Addressing Key Concerns

One of the biggest challenges facing the development of a state-backed crypto in Argentina is ensuring consumer protection.The crypto market is notoriously volatile, and investors are vulnerable to scams, fraud, and market manipulation.Therefore, it is crucial to establish a robust regulatory framework that protects consumers while fostering innovation.

Key regulatory considerations include:

• Licensing and registration: Crypto exchanges and other service providers should be required to obtain licenses and register with a regulatory authority.
• Anti-money laundering (AML) and counter-terrorism financing (CTF) compliance: Crypto businesses should be subject to AML and CTF regulations to prevent the use of digital assets for illicit activities.
• Investor protection: Clear guidelines should be established regarding the disclosure of risks associated with investing in crypto, as well as mechanisms for resolving disputes between investors and service providers.
• Data privacy: Regulations should address the collection, storage, and use of personal data by crypto businesses to protect the privacy of users.

Furthermore, it is essential to educate the public about the risks and opportunities associated with crypto investing.This can be achieved through public awareness campaigns, educational resources, and financial literacy programs.

Argentina's Crypto Landscape: Adoption and Challenges

Despite the challenges, Argentina has emerged as a significant player in the global crypto market. Leader in cryptocurrency, Bitcoin, Ethereum, XRP, blockchain, DeFi, digital finance and Web 3.0 news with analysis, video and live price updates.The country's economic instability and restrictions on accessing hard currency have driven many Argentinians to embrace digital assets as a way to preserve wealth and transact freely. The Texas lawmaker s introduction of a state-issued gold-backed digital currency would lead to competition with the Federal Reserve notes and the Fed s monopoly on money. More News:Data from Chainalysis indicates that Argentina saw substantial crypto transactions, making it one of the largest crypto havens in the world.Moreover, a report by Bitso, a Mexican crypto exchange, revealed that a significant portion of crypto trading volume in Argentina comes from stablecoins like USDT and USDC.This highlights the increasing reliance on stable digital assets pegged to the U.S. dollar to navigate the challenges of accessing hard currency.

Reasons for Crypto Adoption in Argentina:

1. High Inflation: Argentina has struggled with high inflation for decades, eroding the value of the national currency, the Peso.Crypto, particularly stablecoins, offer a hedge against inflation.
2. Capital Controls: The government imposes strict capital controls, limiting the amount of U.S. dollars that Argentinians can purchase.Crypto provides a way to bypass these restrictions.
3. Distrust in Traditional Institutions: Many Argentinians have lost faith in traditional banks and financial institutions due to economic instability and government policies. The most recent news about the crypto industry at CCN.com. Latest news about Bitcoin, Ethereum, blockchain, mining, cryptocurrency prices and more.Crypto offers an alternative, decentralized system.
4. Growing Tech Savvy Population: Argentina has a relatively young and tech-savvy population that is comfortable using digital technologies, including crypto.

However, this widespread adoption also presents challenges.The lack of a clear regulatory framework creates uncertainty for businesses and investors, and the volatility of the crypto market poses risks to consumers.Moreover, the use of crypto for illicit activities, such as money laundering, remains a concern.

The Role of Bitcoin in Argentina's Financial Future

While the focus is on a state-backed crypto, the role of Bitcoin in Argentina's financial future should not be overlooked.Bitcoin's decentralized nature and limited supply make it an attractive alternative to traditional currencies, particularly in countries with high inflation and unstable economies.Some lawmakers even propose giving the central bank the power to buy, hold, and mine Bitcoin. A 2025 report by Bitso, a Mexican crypto exchange, indicated that 60% of the crypto trading volume in Argentina comes from stablecoins, such as USDT or USDC. This underscores an increasing reliance on stable digital assets, pegged to less volatile currencies like the U.S. dollar, to navigate the challenges of accessing hard currency in aThis kind of measure could give Bitcoin further adoption.

However, Bitcoin also faces challenges in Argentina.Its volatility can deter risk-averse investors, and its energy-intensive mining process raises environmental concerns. Bitcoin (BTC) adoption in Argentina could gather pace after a lawmaker unveiled a bill that would give the nation s Central Bank the power to buy, hold, and Argentinian Lawmaker Wants to Let Central Bank Buy and Mine BitcoinFurthermore, the lack of regulatory clarity can create uncertainty for businesses and investors.

Integrating Bitcoin into the Argentine Economy:

• Legal Tender Status (Unlikely): While El Salvador adopted Bitcoin as legal tender, this is unlikely to happen in Argentina due to political and economic considerations.
• Regulatory Framework: Establishing a clear regulatory framework for Bitcoin would encourage adoption and innovation while protecting consumers.
• Investment Vehicle: Allowing institutional investors to invest in Bitcoin could bring more capital into the market and increase its liquidity.
• Payment Method: Encouraging businesses to accept Bitcoin as payment would increase its utility and adoption.

Alternative Approaches: The Case for Regional Cryptocurrencies

Besides a national crypto, there have been other proposals for digital currencies in Argentina. A lawmaker has introduced a bill in the Ohio Senate that would effectively restore something reminiscent of OhioCrypto.com, the short-lived website that enabled the state to accept tax payments via cryptocurrency several years ago. Senate Bill 317 would also expressly permit state universitiesJosefina Canale, a lawmaker, has suggested the development of a cryptocurrency specifically for the city of Mendoza. An Argentinian lawmaker has launched a draft bill that proposes regulating Worldcoin and its operator in the Latin American nation. The move comes just days after Worldcoin announced a planned expansion in Mexico. Some Mexican lawmakers have also called for a probe into operator Tools for Humanity. Argentina Lawmaker: We Must Protect ConsumerThis regional approach could offer several advantages. Josefina Canale, parlamentar da Argentina, declarou em sua conta pessoal no Twitter que ela a favor da cria o de uma criptomoeda exclusiva para a cidade de Mendoza, que seria apoiada e monitorada pelo governo local.Local governments might be better equipped to understand and address the specific needs of their communities.It also allows for a more targeted approach to regulation and implementation. Argentine President Javier Milei may face impeachment after promoting a cryptocurrency that swiftly climbed in value before crashing, opposition lawmakers announced on Saturday. Reports in theIt's a potential testing ground for broader adoption.

The Political Landscape: President Milei's Stance on Crypto

President Javier Milei's stance on cryptocurrency is complex and somewhat contradictory. French government to meet Crypto-CEOs after series of brutal kidnappings; Trump newest crypto company is called American Bitcoin and will soon be listed on Nasdaq; Bitcoin can climb to ATH thanks to agreement between China and the US; European Union wants access to all crypto transfers as from 2025; Memecoins and Ether are biggest winnersWhile he has expressed support for Bitcoin and other decentralized digital currencies, he has also been criticized for promoting cryptocurrencies that have subsequently crashed in value, such as the LIBRA memecoin.This has led to accusations of misleading investors and raised questions about his understanding of the crypto market.

Milei's libertarian ideology aligns with the principles of decentralization and individual freedom that underpin the crypto movement. Lawmakers in Argentina s Chamber of Deputies backed an investigation into President Javier Milei s alleged involvement in the Libra (LIBRA) cryptocurrency scandal. According to an April 8However, his actions and statements have sometimes been inconsistent with these principles, creating confusion and uncertainty among investors.

Looking Ahead: The Future of Crypto in Argentina

The future of cryptocurrency in Argentina remains uncertain.The development of a state-backed crypto is just one possible scenario. Legal filings argued that Milei directly influenced LIBRA s rapid rise and fall, misleading investors into believing the token was a government-backed initiative. The LIBRA scam has become a national-level debacle, as Argentina s stock market plunged 6% at Monday s opening. Argentina s stock market recorded a sharp decline on Monday.Other potential developments include greater adoption of Bitcoin, the emergence of regional cryptocurrencies, and the implementation of a comprehensive regulatory framework. Argentinian Lawmaker Mart n Yeza in 2025. (Source: @martinyeza/X) We need a change in the law. Because Bitcoin is not a traditional currency, of the kind issued by a government or centralized body. Argentinian Lawmaker Mart n Yeza. Yeza said that he had been inspired by Santiago Siri, an Argentine entrepreneur and blockchain specialist.The recent announcement that Argentina's central bank will allow cryptocurrency firms to operate within its financial system is a positive signal.It suggests that Argentina is becoming more open to innovation.

Factors that will Shape the Future of Crypto in Argentina:

• Government Policies: The government's policies towards crypto, including regulation, taxation, and adoption, will have a major impact on its future.
• Economic Conditions: Argentina's economic conditions, including inflation, capital controls, and access to foreign currency, will continue to drive crypto adoption.
• Technological Innovation: Advances in blockchain technology and the development of new crypto applications will create new opportunities for growth.
• Global Trends: Global trends in the crypto market, including regulation, adoption, and innovation, will influence the development of the Argentine crypto ecosystem.

The potential success of any crypto initiative in Argentina relies heavily on public trust, informed regulation, and the ability to provide real solutions to the country's economic challenges. Argentine President Javier Milei could face an impeachment trial in Congress, opposition lawmakers said on Saturday, after the libertarian leader touted a cryptocurrency which crashed soon after.While the journey ahead is complex, Argentina's position as a significant crypto hub underscores the potential for innovation and transformation in its financial sector.

Conclusion: Key Takeaways and the Path Forward

The Argentinean lawmaker's proposal to explore a state-backed crypto highlights the growing recognition of digital assets as a potential solution to the nation's economic woes.However, the path forward is not without its challenges.The recent LIBRA scandal serves as a cautionary tale, emphasizing the need for transparency, due diligence, and robust regulation.Argentina must learn from past mistakes and establish a clear and comprehensive regulatory framework that protects consumers, fosters innovation, and prevents illicit activities. His post linked to a website featuring his signature slogan, long live freedom, and assured his 3.8 million followers that the world wants to invest in Argentina. Thousands did.Whether the focus shifts to a national cryptocurrency, Bitcoin adoption, or regional initiatives, it is vital that Argentinian regulators move forward carefully. Argentine President Javier Milei is facing impeachment calls - and legal action accusing him of fraud - over his promotion of cryptocurrency on social media. Milei posted on X, formerly TwitterUltimately, the success of any crypto initiative in Argentina will depend on building public trust, addressing the country's specific economic challenges, and creating a sustainable and inclusive digital economy. Um criptopeso para a Argentina? A proposta de Canale n o nova. Semanas atr s, o ex-presidente do Banco Central da Argentina (BCRA), Martin Redrado, tamb m havia colocado sobre a mesa a id ia de criar um criptopeso nacional, afirmando seguir o modelo da China.The future of crypto in Argentina is far from certain, but the ongoing exploration and discussion point to its enduring potential to reshape the nation's financial landscape. Argentina's lower house of Congress opted to launch a probe into the Libra cryptocurrency, which President Javier Milei hyped before its sudden collapse cost investors hundreds of millions ofIt remains to be seen whether Argentina's embrace of digital assets will pave the way for greater economic stability or lead to further financial instability. Argentina's President Javier Milei faced criticism and threats of impeachment on Saturday after he made a post on social media promoting a cryptocurrency that quickly tanked in value. MileiThis is definitely a situation worth watching closely.Will an Argentinean Lawmaker be able to deliver on this potential promise of a state-backed crypto?