They propose to eliminate the peso and replace it with a digital currency

The former director of the New Bank of Chaco and president of the foundation, Carlos María De los Santos, explained that the initiative is part of a comprehensive proposal that mainly seeks to reduce evasion and inject money into the economy that is currently “paralyzed”, without monetary issue. Similarly, De los Santos proposed the creation of the Digital Argentine Peso (PAD) to replace the current currency of physical pesos. Digital and technological structures would be implemented in banks, without reaching a cryptocurrency.

“The PAD will bring with it greater tax collection from current evasion, which can be estimated at around 30% of GDP, which may be used to repair all the social inequalities left by the current system,” he explained.

In addition, he argued that it is necessary to refinance the credits of the banks’ current portfolios, setting the payment of capital and interest in the last installment and for the longest term possible, which will allow liquidating liabilities while there is inflation greater than 20%.

The push for CBDCs

As the world becomes more digital, central banks are researching, and in some cases already launching or testing, their own digital versions of paper money, called central bank digital currencies, or CBDCs. In most cases, they are designed to be used in the same way as cash, to buy and sell goods and services, and like cash, they are backed by the central bank of each country. CBDCs have the potential to help modernize payments and bring more people into the digital economy.

CBDCs also offer a way to reduce the inefficiencies of printing and moving money: the cost of managing physical cash can be as high as 1.5% of a country’s GDP. But CBDCs are issued by a central bank, with the same guarantees that back a nation’s paper currency: they are equivalent to cash and designed for daily transactions.