Are Bitcoin and the Argentine peso considered money? Martín Gonzalez, CEO and Co-Founder of Buenos Aires Art Gallery shared his views on the subject with Cointelegraph en Español.
about bitcoinsthe CEO said: “There is a debate whether or not Bitcoin is money based on its characteristics and functionalities. The traditional conception considers that money should serve as a medium of exchange, a unit of account, and a store of value. The volatility of Bitcoin generates doubts and debates about compliance with these requirements”, he further added: “Personally, I think that it does not make much sense if Bitcoin is money or not because its main attribute is that of safeguarding value and the incentives of the protocol go in that direction and not in using it in a daily transactional way. In fact, I think it’s much more powerful as a credit asset than money.”.
When talking about the Argentine pesoGonzalez explained: “If we refer to the strict definition, it is clear that the Argentine peso does not meet the requirements of being a store of value (since 1992 it reduced its value by 99.7%). As it is the legal tender in the country, its use is mandatory for the conclusion of contracts and the exchange of goods and services, so whether it is money or not is a discussion without much importance from a semantic point of view.”.
Martin Gonzalez also shared his opinion about stablecoins, on this item he remarked: “Stablecoins, whether at parity with the dollar, euro, commodities, baskets of products, or currencies, are a good instrument to be used as money. Cryptocurrencies that do not have a clear issuance policy, or that do have one, but do not have elasticity to demand, hardly fulfill the function of money. And it is good that they are not, semantically speaking, because their roles and their functions are different.”.
With respect to Why is the peso still used in Argentina as money?the CEO stated: “Because it is a very good instrument of power. Controlling the emission, circulation and rate allows you to have a lot of power tools and allows them to cover short-term gaps. On the other hand, Inflation in Argentina has remained a chronic tax that distorts absolutely everything but it is also a great fundraising instrument”.
Finally, the BAG Co-Founder remarked: “Argentina is far from having its own CBDC, there is currently no serious line of research as it exists in other countries. Having a CBDC does not end the problem of inflation per se. And I think that with the weak legal certainty that we have, giving up certain rights and freedoms with the CBDC such as anonymity, a decision on how, where, when and what I can spend my money on, are initially worrying. TO In the long term, it is inevitable that it will be used here and in almost all countries.”.
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