Argentinian Lawmaker Wants to Let Central Bank Buy and Mine Bitcoin

Adoption Argentina

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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November 19, 2024 22:00 EST

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Bitcoin (BTC) adoption in Argentina could gather pace after a lawmaker unveiled a bill that would give the nation’s Central Bank the power to “buy, hold, and mine” the token.

The media outlet La Voz reported that the bill is the brainchild of the Republican Proposal (PRO) lawmaker Martín Yeza.

Central Bank Bitcoin Move for Argentina?

Under current laws, the Central Bank of the Argentine Republic (BCRA) is not allowed to buy or hold crypto or any other “unregulated financial asset.”

But Yeza has submitted a bill that proposes editing the BCRA’s charter. The bill would allow the bank to make its own decision on what percentage of its reserves it wants to hold in Bitcoin.

If passed, the draft law would also let the BCRA commission Bitcoin mining projects.

“We need a change in the law. Because Bitcoin is not a traditional currency, of the kind issued by a government or centralized body.”

Argentinian Lawmaker Martín Yeza

Yeza said that he had been inspired by Santiago Siri, an Argentine entrepreneur and blockchain specialist.

In 2014, Siri called on the Argentine government to allow the bank to use 1% of its reserves to buy Bitcoin.

“If this had been done in 2014, the bank could have bought BTC 452,000 for $280 million. Today, those coins would be worth $37 billion. It is true that [BTC] is volatile. But in the long-term, it is worth thinking seriously about it.”

Yeza

Yeza conceded that there was no chance his bill could pass before the end of the year. And he conceded that it would also need the support of President Javier Milei.

However, Milei has expressed pro-BTC sentiments in the past. And Yeza said that his proposal was “an opportunity to align with the disruptive leadership that both [US President-elect Donald] Trump and Elon Musk are going to [enact.]”

“Clearly, this is not a matter of great urgency. But there is an opportunity here. And, although not many countries hold Bitcoin, it is also true that they do not have libertarian presidents. I think that a new era of ideas is starting to open up. And this is one of its important axes.”

Yeza

Crypto adoption is still on the rise in Argentina after years of hyperinflation. And there are signs that the Milei-led government is growing increasingly keen on BTC.

Last month, both Milei and senior National Securities Commission (NSC) officials attended a local crypto-themed summit.

And earlier this year, Argentina’s Vice President Victoria Villarruel said she “discussed Bitcoin adoption” with El Salvador’s President Nayib Bukele.

The NSC, Argentina’s top regulator, has also discussed BTC adoption with its Salvadoran counterparts at least twice this year.

Washington Growing Bitcoin-keen?

Central bank Bitcoin moves could gather pace elsewhere in the world, too. This month, Bloomberg reported that the Republican Senator Cynthia Lummis unveiled a bill that builds on Trump-led plans to build a strategic Bitcoin reserve in the US.

Lummis wants the US to buy BTC 1,000,000 by selling around $90 million worth of its gold reserves.