This article is from es.cointelegraph.com and the original article can be read here
The NGO Bitcoin Argentina (Civil Association DECODES) received a response from the Central Bank of the Republic of Argentina (BCRA), after having requested the Ministry of Economy, access to public information on the details of the agreement with the International Monetary Fund (IMF) and the section on the commitment to “discourage” the use of cryptocurrencies. This was announced by the non-governmental organization, Bitcoin Argentina.
On March 10, almost two months after the non-governmental organization, Bitcoin Argentina, made the request, The BCRA responded to the request after the Ministry of Economy referred that institutional request.
As explained by the agency, in the Memorandum of Understanding with the International Monetary Fund (IMF) between the use of crypto assets, money laundering and financial stability or resilience, contains a section, where it is stated: “discourage the use of cryptocurrencies with a view to preventing money laundering, informality, and disintermediation”.
In this sense, and given the concern on the part of the organization that the authorities are agreeing “discourage the use of cryptocurrencies in prevention of money laundering and informality”. The NGO Bitcoin Argentina requested access to public information about the agreement they carried out with the IMF.
In response to this, the Central Bank of the Republic of Argentina, issued its point of view regarding the crypto ecosystem, letting it be seen as a sector of risk and implications for financial stability that digital currencies can carry, for which it must “be supervised ”.
Alleging its position in different editions of various international organizations, which refer to crypto assets, their approach, potential implications for financial stability and currency substitution, among others, and which show cryptocurrencies as risk assets for financial stability.
In particular, the document of the financial entity, highlights very especially, the assumptions related to the “Risks of money laundering and financing of terrorism (…). Examining, the fact of its little capacity to be monitored, its cross-border scope , its easy access, in addition, that “it is necessary to warn about the potential risks associated with non-compliance with international standards in terms of prevention of money laundering and the financing of terrorism (…)”, according to what they point out.
As for why you want to discourage the use of cryptocurrencies, the BCRA does not specify what actions or measures the government will take to “discourage the use of cryptocurrencies” in the region.
The entity only reflects a position focused on prudence, with a vigilant attitude in the sector, “adopting measures to reduce uncertainty and anchor exchange rate expectations, in addition to reconfiguring its monetary policy instruments to accompany the recovery process and reinforce monetary and financial stability”, thus, constantly monitoring the sources of risk, oriented to the actions of the Central Bank of the Republic of Argentina (BCRA) to “alert” both users and investors in general, about the risks and implications related to the use of these cryptocurrencies.
Given the response received by the BCRA, the NGO Bitcoin Argentina, stated that they agreed with what was received, however, they called for joining efforts so that the potential of blockchain technology reach the entire industry.
“We believe that, although the response is positive, as a crypto community we must join forces and collaborate so that more and more people and institutions understand the potential of Bitcoin, blockchain and the entire industry.”