The issue with Argentina abolishing its central bank is that they have plans to dollarize, so they are merely trading their own for one controlled by bureaucrats in DC, in which they’ll have far less agency with and control over. Situation is even more dire given their outstanding debts (some of the worst in the world) to the IMF and the like.
I understand dollarization (something El Salvador also did in the 2000s) is a somewhat necessary step to lower inflation and have price stability in the short term, but on the one hand, skipping dollarization and going right to bitcoinization would be the true “anti central banker” visionary move...and have the potential to free Argentina of the shackles of its international creditors much quicker.
Of course, another probably more politically viable option would be to follow Bukele's playbook of playing just nice enough with the IMF and other creditors while buying #bitcoin...with the same end goal in my mind.
Let's wait and see what role bitcoin will play, if any. The jury is still out in my opinion but they do have a historic opportunity to show the world the potential of bitcoin.
prochronist
npub147…6lr8c
2023-12-10 08:08:29
Author Public Key
npub1478w8wcqdhq9utad68256d7xc2gjcek03t99sr6qnmh5drzr4e8sl6lr8cPublished at
2023-12-10 08:08:29Event JSON
{
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"pubkey": "af8ee3bb006dc05e2fadd1d54d37c6c2912c66cf8aca580f409eef468c43ae4f",
"created_at": 1702195709,
"kind": 1,
"tags": [],
"content": "The issue with Argentina abolishing its central bank is that they have plans to dollarize, so they are merely trading their own for one controlled by bureaucrats in DC, in which they’ll have far less agency with and control over. Situation is even more dire given their outstanding debts (some of the worst in the world) to the IMF and the like.\n\nI understand dollarization (something El Salvador also did in the 2000s) is a somewhat necessary step to lower inflation and have price stability in the short term, but on the one hand, skipping dollarization and going right to bitcoinization would be the true “anti central banker” visionary move...and have the potential to free Argentina of the shackles of its international creditors much quicker.\n\nOf course, another probably more politically viable option would be to follow Bukele's playbook of playing just nice enough with the IMF and other creditors while buying #bitcoin...with the same end goal in my mind.\n\nLet's wait and see what role bitcoin will play, if any. The jury is still out in my opinion but they do have a historic opportunity to show the world the potential of bitcoin.",
"sig": "e356055dcaa59f68ca44380747771950cb54466cb24415746167faa308cc8c39bb71472925cf4e89c0cba0c5107f1bac4da1acb132ced4b680b222705d5e83ab"
}