One week after it was passed by the Chamber of Deputies, the Senate approved the $45 billion loan.
Thursday night, the Argentine Senate approved a $45 billion debt agreement with the International Monetary Fund. This was linked to an agreement that prohibits the use of cryptocurrencies.
The Chamber of Deputies also approved the debt deal on March 11. It will help to restructure the $57 billion program that the country received in 2018. The cryptocurrency provision was, for its part, included in a letter of intentsigned on March 3 by Argentina and IMF. This letter now needs to be approved the IMF board.
“Strengthening Financial Resilience” is the title of the provision. It states: “To further protect financial stability, we are taking important measures to discourage the use cryptocurrency with a view towards preventing money laundering and informality, as well as disintermediation.”
The letter of intent states that commercial banks will remain liquid and well-capitalized. However, strong bank oversight will continue, particularly after the end of regulatory forbearance related to pandemics.
According to the letter, Argentina plans to continue its digitalization of payment systems “to increase the efficiency and cost of cash management and payments systems,” the letter states. This country in Latin America, which experienced a 52.3% year-on-year increase in inflation in February, has been one of the most important crypto hubs in South America. According to data from local exchanges, Stablecoins sales increased sixfold in 2020.