The intended change in the monetary system announced by President Javier Milei, which contemplates free competition of currenciescould lead to positive transformations in the ecosystem of the cryptocurrencies and challenges complex for exchange agencies.
This is clear from the analysis carried out by the Argentine company Balance in the event of a possible change in the use of weight and the ability to freely choose other currencies to carry out transactions in the country.
Free competition of currencies supposes a model where they coexist and compete with each other in the market.
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“This perspective implies a significant change in the monetary and economic policy of a country, since it challenges the state monopoly on the issuance of currency and the mandatory nature of its use in many cases. This approach, which promotes freedom of monetary choice, gradually pushes from below to an implicit dollarization of the market,” he explains. Pablo ReyesCEO of Saldoar, digital money exchange platform.
In the case of cryptocurrencies, Reyes maintains that in this framework, “will finally have the opportunity to present themselves as a legally analogous alternative to traditional currencies, becoming an innovative option, allowing cross-border transfers that are resilient to current inflation rates. At the same time, with its blockchain technology and decentralized approachwill change the way we transact and store value; thus challenging traditional currencies to evolve in an ever-changing digital financial world“Reyes said.
Collateral damage
In relation to exchange agencies, the CEO of Saldoar warned that these “could face a challenging scenario, given that if people have the freedom to choose between various currencies to carry out transactions, the demand for foreign exchange services at these agencies is likely to decrease; In addition, they will compete not only among themselves, but also with other forms of currency exchange, such as cryptocurrency transfers and digital payments.”
On the other hand, as a result of the fact that the cost of living in our country could increase compared to that of other countriesReyes pointed out that this environment of currency competition could drive the flight of Argentine freelancers abroad. in search of a better standard of living and economic opportunities, since, despite earning in dollars, their income would not have as much value, nor would it provide them with stability or long-term financial security.
Source: Ambito
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