In 2019, Tim Draper said that the Argentine peso “is a currency that nobody trusts.” The tycoon argued that adopting Bitcoin would allow keeping highly skilled people in the country.
The intention of the government of El Salvador to adopt Bitcoin (BTC) as legal tender has led other countries to try to do the same. The possibility of Argentina adopting the pioneering cryptocurrency in the recent past has resurfaced.
In 2019, entrepreneur and investor Tim Draper recommended the Argentine government to exchange the Argentine peso (ARS) for Bitcoin. He said that this would prevent a “brain drain” due to the country’s economic situation and the devaluation of its national currency. Then-President Mauricio Macri met with Draper when the latter visited Buenos Aires in 2019.
According to local newspaper La Nación, Draper reported that he talked about Bitcoin and the devaluation of the Argentine peso. He proposed to Macri that he would double the investment that he was making in the country if the Argentine peso appreciated more than Bitcoin. Besides, he recommended declaring Bitcoin legal tender if its value exceeded that of the Argentine peso. The investor said that this would be a perfect solution as there would be no trust in the Argentine fiat currency.
The tycoon argued that Argentina can “let big brains leave the country and have a currency that nobody trusts.” He also explained that it can “do something extraordinary” like validate the use of Bitcoin in the national territory. In this regard, Draper stated that “this is a time when a president could have a great impact on his country.”
When the investor and the former Argentine president met, Bitcoin was trading at just ARS 163,424. Currently, although it is 30% below its all-time high, it is worth around ARS 3,090,935 per unit.
Draper also suggested that Macri improve Wi-Fi and 5G Internet as that would attract large investors. He told the former president not to worry about building routes because the big companies coming to Argentina would do it.
In 2017, Draper already stated that “if your government does not like Bitcoin, then you should move elsewhere”.
El Salvador and Japan Are Pioneers in Bitcoin Adoption
In recent days, the President of El Salvador Nayib Bukele said that he will introduce a bill to legalize Bitcoin in his country. The reasons for this decision are the possibility of attracting investment, sending remittances, and accessing the banked economy.
Other officials and legislators, such as Paraguayan Carlos Rejala, stated that they will promote the use of Bitcoin in their countries.
In March 2017, the government of Japan had authorized the use of Bitcoin as a means of payment. However, several officials, such as the Governor of the Bank of Japan, Haruhiko Kuroda, opposed this. They argued that it was not legal tender and that it “has no physical assets to back its value.” However, many companies of different sectors accept cryptocurrencies as a payment method in that Asian country.
In 2017, the Venezuelan government also decided to accept Bitcoin as a form of payment. They even regulated the implementation of an additional tax on the payment with cryptocurrencies.
By Alexander Salazar