Argentina’s central bank is currently working with banks and credit card companies to facilitate the introduction of debt cards denominated in US dollars.
This announcement was made by bank chief Santiago Bausili in a recent post on X, formerly known as Twitter.
The initiative is part of a broader strategy to adopt the dollar as the official currency in Argentina. Bausili stated:
We are coordinating and working with the cards, the buyers, and banks so that they are available as soon as possible.
He also mentioned that “the regulations are all ready; the implementation requires systems and security that is being developed.”
This indicates that while the regulatory framework is in place, technical and security measures are still under development.
While Bausili did not provide a specific timeline for the launch of these dollar-denominated debt cards, a report from Infobae indicated that they are expected to be ready by the end of the year, as cited by the central bank.
The push for dollarization has gained traction under President Javier Milei, who expressed intentions during his campaign to quickly shut down the central bank and dollarize the economy.
However, since taking office, Milei has opted for a more gradual approach, focusing on reducing the supply of pesos and allowing for the increased use of dollars in a wider range of transactions.
This shift aims to stabilize the economy and provide a more reliable currency option for consumers.
The introduction of dollar-denominated debt cards is anticipated to enhance the purchasing power of Argentine citizens, particularly in a climate where the peso has faced significant depreciation.
The central bank’s collaboration with financial institutions is essential for ensuring the effective implementation of this initiative, which could have lasting implications for the country’s financial landscape.
As the central bank continues its preparations, the emphasis remains on developing secure systems that will support this transition towards a dollarized economy.
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