“You have to have a shock policy, the possibility of having a model that implies applying the digital currency as the sole legal tender. We have to recognize the factual existence of a bi-monetary regime”, explained the Chaco governor.
“The central idea is: you have dollars, yen or whatever. It is estimated that there are between 130,000 and 250,000 million dollars under the mattress or outside the formal circuit. If you want to make transactions in dollars, if you have them, you can do it, but first you have to put a 100% reserve in a fiduciary account of the Central Bank, ”he explained about his proposal. “This traceability of the digital currency will allow paper currency to be eliminated,” he added.
For the governor of Chaco, “the great problem of the world is inequality.” To solve it, he argued, digital currency tied to technological advances may be the tool governments must turn to. And he specified that the use of that asset would be “mandatory”. “This is the key issue in Argentina. With the digital currency, you anchor the variables, you manage to reduce evasion and you modify the coefficients of monetary variation”, he added.
The man from Chaco explained: “If all transactions are made digitally with that currency deposited in the Central Bank, that has no impact on the banking multiplier and does not affect macroeconomic development. Thus, you achieve that evasion is drastically reduced”. In his opinion, this will achieve “a substantial improvement in the efficiency of public spending, soundness from the fiscal point of view and really solve the problems of macroeconomic instability.”
“93% of the transactions made by Argentines are digital. It is information from the Central Bank. From the IFE and even all the ANSES payments are made digitally. That is no longer a problem,” Capitanich explained. The data mentioned by the governor of Chaco refers to the fact that according to the BCRA, 93% of adults have a bank account, even when its use is scarce.
Capitanich explained that in his province, the “digital currency” plan is already underway: “In Chaco we are going to have a digital currency experience. They already work, there are more and more electronic wallets in operation. Digital transactions with traceability are going to be the key to control. There will no longer be a need for a tax on financial transactions because they will all be registered”.
“There is a crack in tax evasion and avoidance, there are tax havens and a terrifying concentration in the production of goods and services. How is that corrected? With information, to be able to make decisions. That is why the State has to use artificial intelligence, big data and algorithms, as large corporations do to enhance their messages and satisfy their minority interests. Why can’t the state use the same to achieve equity?
Source: Ambito
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