Province of La Rioja, Argentina, takes a step towards the future with its own digital currency
Province of La Rioja, located in the northeast of Argentina, has taken the initiative to approve and launch its own digital currency, thus becoming one of the first Argentine provinces to adopt this technology.
Indeed, with the objective of covering a part of the salaries of local public employees, the Legislature of La Rioja approved by an absolute majority the project promoted by Governor Ricardo Quintela. For the issuance of a quasi-currency called Debt Cancellation Bonus (BOCADE), which will bear the name “El Chacho” in honor of the leader Ángel Vicente Peñaloza.
The president himself even celebrated the creation of that money, who described the appearance of provincial quasi-currencies as an achievement:
“To think that during the campaign they treated me like a crazy person for postulating a scheme in which there was free currency competition and now they are promoting it…!!!”
Vice Governor Teresita Madera explained that this initiative seeks to provide support to the workers’ economy and sustain local commerce, especially in view of the distressing situation generated by the economic policies implemented by the National Government. The new digital currency is presented as an alternative that will strengthen the economic fabric of the province and offer greater stability to the community.
According to the information published by the Legislature of the aforementioned province, the new currency consists of public debt securities that are placed into circulation to be used as a means of payment.
The Province of La Rioja Launches its Own Digital Currency
At the request of Governor Ricardo Quintela, the Legislature of La Rioja approved a project to issue 22.5 billion pesos of Debt Cancellation Bonds. That is, from now on, there will be transactions that can be carried out with a quasi-currency of provincial jurisdiction.
“We want to increase salaries and we need them to send the funds that correspond to the people of La Rioja. The workers were left well below inflation, causing a strong loss of purchasing power.”
After learning of the project of the governor of La Rioja, Ricardo Quintela, to create its own currency, the president of Argentina, Javier Milei, was in favor of the plan. Although he warned that there could be a “loss of income.”
How Does Alternative Currency Work?
The recently approved law establishes that the Government of La Rioja must reach an agreement with Banco Rioja or other local banking institutions to determine the form and modality of accreditation of BOCADE in checking accounts, savings accounts or other bank deposit methods. Although the law does not specify whether the bonds will be physical or digital, it is expected that a modality will be used that facilitates their use and circulation.
Under this law, the provincial State undertakes to pay 30% of the salaries of state employees using the BOCADE. These bonds will be accepted by state entities, municipalities, companies and decentralized entities, as a form of payment for the total or partial cancellation of their monetary credits.
Finally, with this measure, La Rioja seeks to promote the local economy, promote financial inclusion and strengthen its economic autonomy. The new digital currency will allow residents of the province to carry out transactions more efficiently and safely, in addition to promoting the development of local projects and ventures.
By Audy Castaneda
