Argentina’s National Securities Commission (CNV) and El Salvador’s National Digital Asset Commission (CNAD) held a meeting on May 23 to exchange experiences on BTC regulation and adoption and explore the possibility of signing a cooperation agreement. Fueled by hyperinflation, could Argentina become the next El Salvador?
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According to the official website of Argentina , Roberto E. Silva, Chairman of Argentina’s National Securities Commission (CNV), and Patricia Boedo, Vice Chairman, met with Juan Carlos Reyes, Chairman of El Salvador’s National Commission on Digital Assets (CNAD), on May 23 to discuss the use of cryptocurrencies throughout the economy. Opinions were exchanged, particularly on El Salvador’s experience in adopting Bitcoin as legal tender.
Roberto E. Silva, Chairman of Argentina’s National Securities Commission, hopes to learn from the valuable experience of El Salvador’s National Commission on Digital Assets and said:
We want to strengthen our relations with El Salvador and therefore we will explore the possibility of signing a cooperation agreement with them.
In fact, relevant Argentine officials visited El Salvador in mid-March and participated in a technical conference organized for regulators on key elements of securities market development and supervision.
Will Argentina’s regulation of virtual assets be relatively friendly?
According to previous reports , Argentina’s National Securities Commission (CNV) promoted the implementation of the Virtual Asset Service Provider (VASP) registration system on March 25. Because Argentine President Javier Milei repeatedly praised Bitcoin before the election and criticized the normal inflation of fiat currencies, some Bitcoin enthusiasts are dissatisfied with his new regulatory policy.
According to media reports from CriptoNoticias , the Argentine National Securities Commission (CNV), the Financial Information Unit (UIF) and the Argentine FinTech Chamber have been working hard to communicate and formulate new regulations for Bitcoin transactions since April.
CNV President Roberto E. Silva said the government was open to dialogue:
We will listen to them, make every effort to understand them, and then we will decide the best way to ensure compliance with the standards objectives and try not to impede activities.
Spokespersons for the CNV and FIU assured that meetings with different players in the industry will continue in the coming months. In addition to ensuring that regulation "is conducted in a transparent manner", the plan also aims to establish a pipeline for the implementation of the new rules.
With the cooperation between Argentina and El Salvador, CriptoNoticias interprets the regulation as potentially more "friendly" and without too many restrictions in terms of adoption, development and business opportunities.
Hyperinflation fuels Bitcoin adoption in Argentina
Argentina's new right-wing liberal president, Javier Milei, took office at the end of last year and announced a series of radical economic shock treatments and more than doubled the value of the Argentine peso. Previously, Ark Invest analyst David Puell pointed out that Argentina’s relationship with Bitcoin is developing rapidly, driven by economic challenges. Argentina is facing hyperinflation, and people are looking for alternatives to protect their wealth.
According to TradingView, the Argentine peso has devalued by 278% in one year and as high as 1,909% in five years, showing that it is impossible to survive using the local currency.
