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The governor of Chaco, Jorge Capitanich, tried to explain (with little luck) his proposal to use a cryptocurrency to prevent tax evasion and put an end to the problem of lack of dollars.
In the midst of the rhetoric that the government debates how to get out of market pressures, the governor of Chaco, Jorge Capitanich, spoke of the need to launch a “shock policy” and in that line he proposed the use of a digital currency as a “single legal tender” which, in his opinion, would solve two problems in one: “macroeconomic instability” and evasion. According to the former chief of staff, a new monetary model it would put an end to the problems generated by the US currency on the functioning of the country.
How Capitanich’s proposal would work
“We need to have a plan that solves Argentina’s three structural problems: energy, external and logistic restriction. The three feed each other they have macroeconomic instability of chronic origin. You have to have a shock policy and, for me, it has to be a chance to have a model that provides for the application of digital currency as the only legal tender “, Capitanich assured.
In that sense, he added: “If you want to do dollar transactions, if you have them, you canbut you have to deposit a trust account with the Central Bank with 100% reserve “.
According to the Chaqueño’s projections, it is estimated between 130 and 250 billion dollars are “under the mattress” or outside the formal circuit.
According to the governor, with this tool he proposes “evasion is drastically reduced“, there would be a” substantial improvement in the efficiency of public spending, in solidity from a fiscal point of view “, and it would be resolved “the problems of macroeconomic instability”.
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Source: Clarin
