A debt deal worth AU$61 billion ($45 billion) with the International Monetary Fund (IMF) was accepted by the Argentine Senate on Thursday night. The letter of intent tied to an agreement contains a provision that prohibits the use of cryptocurrencies.
According to the agreement, which the Chamber of Deputies also passed on March 11, the nation would be able to reorganise a sum of AU$77 billion ($57 billion) it got in 2018.
The provision on cryptocurrencies is included in the Technical Memorandum of Understanding (TMU) between Argentina and the International Monetary Fund (IMF) on March 3.
The deal had previously been accepted by the lower house of the Argentine National Congress and the Chamber of Deputies. It was also due to be considered by the Senate late Thursday evening to get final consent on the matter.
The provision, titled “Strengthening financial resilience,” states the need to discourage the use of cryptos to safeguard financial stability as well as prevent money laundering, informality, and disintermediation.
Furthermore, as stated in the letter of intent, commercial banks remain liquid and well-capitalized. Still, vigorous bank scrutiny will be maintained, particularly after the unwinding of pandemic-related regulatory forbearance.
The memorandum of intent reads that the Argentine government also aspires to maintain its payment digitisation efforts to enhance “the efficiency and costs of payment systems and cash management.”
The Latin American nation, which had year-on-year inflation of 52.3% in February, has emerged as one of South America’s most dynamic crypto spots in the region. According to data given by local exchanges, the number of stable coins purchased rose sixfold in 2020.
