Argentine’s Congress Favors IMF Debt Deal to Dampen Cryptocurrency

Argentine’s Senate has approved a $45 billion deal with the International Monetary Fund (IMF) that includes a provision that discourages cryptocurrencies, CoinDesk.com reported Friday (March 18).

The vote follows the green light given to the measure by the Chamber of Deputies, the lower level of Congress, one week ago. It is intended to restructure a $57 billion program Argentina received four years ago.

In a letter to the IMF, the international financial institution headquartered in Washington, D.C., from Minister of Economy Martin Guzman and Miguel Pesce, president of Central Bank of the Republic of Argentina, wrote it recommends against the adoption of cryptocurrencies to prevent money laundering.

“To further safeguard financial stability, we are taking important steps to discourage the use of cryptocurrencies,” they wrote.

Still, the letter noted that Argentina intends to further digitize payments as a way to improve the efficiency and cost of payments systems and cash management.

The South American country has become among the leading cryptocurrency centers in that section of the world. Local exchanges reported stablecoin purchases increased six-fold in 2020.

Last week, President Joe Biden signed an executive order directing agencies to study cryptocurrencies and recommend a government-wide approach to regulating digital assets.

Read more: Biden’s Executive Order Set to Fast-Track Crypto Policy

Saying the rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, Biden said his action is expected to establish a single policy on cryptocurrencies and other digital assets.

A fact sheet released by the White House said there’s a need for the U.S. to maintain its leadership in the space. It reports that 16% of the population, or 40 million Americans, use or have used cryptocurrencies,

Bitcoin jumped 8% after the announcement, highlighting the widespread belief that a single, government-wide policy initiative for the crypto industry will be good news for crypto investors.