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They are promoting a bill to start the discussion on cryptocurrencies at the Argentine Congress

November 10, 2020

The Argentine MP Ignacio Torres from the front “Together for Change” plans to present a project on cryptocurrencies at the Congress of the Argentine nation. Cointelegraph en Español spoke to Efraín Barraza, Operations Manager of Athena Bitcoin in Argentina; and Alberto Vega, CEO of Bithan, who worked on the development of the project and seeks to discuss this issue in a legal framework.

Both Barraza and Vega noted that their interest is in having conversations and debates about blockchain technology and cryptocurrencies in Argentina. so as not to descend and take into account that other countries are already discussing these issues.

Efraín Barraza stated: “We understand that in order for the ecosystem to grow, it cannot be outside the law. “And he emphasized how important it is that users and investors have some protection. “When there is no regulation, things like fraud arise, like onecoin,” he said.

They are promoting a bill to start the discussion on cryptocurrencies at the Argentine Congress
They are promoting a bill to start the discussion on cryptocurrencies at the Argentine Congress

On the other hand, Alberto Vega pointed out: “It is important to consider where Argentina stands and how we, as a pioneering country in the field of cryptography, can benefit. ”

Then he added: “Today we can see that the issue of Bitcoin regulation is not even on the table, not even in the national political debate when other countries are already working hard on it.”.

For Vega we have to try to use the ecosystem so that the land can benefit from it. “We have been in the ecosystem for a long time and see the problems in the industry. There are companies whose bank accounts are closed for no reason. These are very arbitrary rules, ”he emphasized. For this reason, he believes that there is a need to bring the conversation about these disruptive technologies to the work table at the institutional level so that everyone benefits and the projects emerging in Argentina have an impact.

Barraza stated that when it comes to shared assets, each asset has its own regulation. People have clear rules to defend themselves and the regulator cannot deviate from established concepts or go beyond its functions. However, he warned that this is not the case in the crypto world. “The nature of the token is that it can work for a lot of different things out of reality,” he explained.

“We’re trying in some way to frame it and try to understand all of this“, He added.

Alberto Vega also spoke about infrastructure, about blockchain and noted that there are definitions and distinctions. He thought that all of this should be talked about in order to avoid fraud. “You need a minimum framework to measure what is there,” he said.

With this initiative, We are looking for massive use of the crypto infrastructure and the associated efficiency, even if the traditional infrastructure can migrate en masse.

How they worked with Congressman Torres andThese two executives stated that they had already worked on the issue and reached out to lawmakers to be one of the youngest, but that they could also better interpret the technology and already had an interest in the subject.

It is important to clarify that neither Barraza nor Vega believe this initiative will be a letter in stone that will be quickly approved. It is important for them to start a discussion that they believe was relegated in Argentina and should be covered so that the various players can move forward.

Barraza emphasized, “This is a trigger and it is unrealistic that it should turn out exactly as the project was written. The interest is to lay the foundation for this industry to flourish as much as possible. “And he recalled that in Argentina the ecosystem with recognized international experts shows a very high level of development.

Before closing, Vega referred to the possibility of an Argentine peso in digital form, a topic that has been addressed in some areas but made clear: “It’s something that seems trivial to us. We are interested in an infrastructure based on crypto “

When will the project be presented?

As reported by iProUp, the text of the project is now ready and will be presented to the Financial Information Unit (UIF) next Wednesday. He is expected to join the Chamber of Deputies two days later.

A deeper analysis

Barraza and Vega initially considered the crypto industry with no specific regulations and felt it was very good for their growth. They also acknowledged that there is a tendency within the community to favor this option, but they noted, “This success has piqued the interest of states as this global crisis has exposed all the inefficiencies of a traditional financial system, that of banks is managed. There has been no major technological advancement in the traditional financial system in the past 50 years, and even if banks could take full advantage of the internet, they could get 10%. With this in mind, one understands the extent of the shortcomings and inefficiencies it exhibits. ”

Understanding this international context and the need to discuss the issue at the national level, they conducted an analysis that took into account:

“”The special case of China This is the most paradigmatic as they have been anticipating this technology since 2014 and have worked to understand and experiment with it. In fact, Yi Gang, the governor of the Central Bank of China, told a Hong Kong Fintech conference panel on Monday (November 2) that the digital yuan program, which is being tested in four major cities in the country, has already sold more than 4 million transactions has carried a total of more than 2 billion yuan. This pilot was announced in 2019 in response to Facebook’s plans to launch the stablecoin Libra, “they explained.

“”The case of the European Central Bank, Brazil and the FED They would initially respond to other reasons, including those given by representatives of 26 central banks in Asia, the Black Sea and the Balkans at the November 6th meeting of the Central Banks’ Club. . In it, the representatives stated that the COVID-19 pandemic had led to a greater expansion of electronic commerce and electronic payment technologies and that this was one of the reasons why banks are increasingly interested in currencies. Digital “.

You also quoted other cases like the European Central Bankshowing “a radical change in prevailing thinking”. They commented that in 2018 this company published an analytical study entitled “Virtual currencies and central banks’ monetary policy: Challenges ahead of us”, in the conclusion of which the bank cited “Virtual currencies are a contemporary form of private money”. Thanks to its technological properties, its global transaction networks are relatively secure, transparent and fast. This gives them good prospects for further development. However, it is unlikely that they will question the dominant position of state currencies and central banks, especially the major currency areas … ´ ”

Fast forward to 2020 and The new President of the ECB, Christine Lagarde, suggested the possibility of a digital euro from her Twitter account and demanded that a public opinion on this possibility be given in a digital survey.

Even Brazil could soon have a digital currency, according to Economy Minister Paulo Guedes at an event held in Brasilia on Wednesday (November 4th). He said: “Brazil will have the digital currency. Brazil is ahead of many countries”, although the central bank president Roberto Campos Neto also spoke about the novelty on Wednesday but made it clear that it is still in the early stages of study. no specific release date.

Meanwhile Alberto Vega said: “We believe Argentina cannot be left behind and we know that the most important thing for a solid currency – digital or not – is a political and legal framework to fuel solid economic growth and encourage the development of the blockchain industry that has the potential to have positive economic impact, which are bigger than any other industry and in the opinion of many experts is a once in a lifetime opportunity, and dare I say it, historical. Most importantly, the country needs to study the potential of this technology and understand why Bitcoin is already considered one of the most important inventions of the century today. ”

“CEO that in addition to the need to strengthen the value of the peso as a currency, it is necessary to create a legal framework that defines the rules of the game so that this industry can progress in this country and projects like Assets MMP or Monda PAR remain You are not on the verge of legal interpretation. A legal framework will allow other interested parties to access the benefits of this technology and promote local industry, ”he later added.

National currencies?

Some are raised state coins. But according to Barraza and Vega, correct currency is not the key Although a decentralized global infrastructure offers many advantages that the state must take advantage of, it mentions for example:

  • At the international level, a financial infrastructure for this technology offers instruments that promote legal certainty, especially in the confiscating nature of intermediaries. These benefits are required to attract direct capital investment.

  • The possibility of coupling as collateral for foreign investments CBDC instruments of the investing country (e.g. e-RMB / digital yuan) for the development of their local investments – this could expand and open the swap capabilities with countries like China today Opportunity with other nations.

  • “A digital currency solution that integrates blockchain technology has enormous advantages over its paper counterpart. This is due to cost reduction, fund traceability and integration with other systems and currencies. ”

  • In terms of transparency, issuing currencies for this technology provides transparency to the system as it provides accurate data on emissions values ​​that include expectations.

Technological impact

“At the industry level, this technology has the potential to have a direct impact: software development, real estate development, retail, financial industry (FOREX, new financial services, new investment engines), international trade, payments, consumer credit,” the executives concluded.

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