Argentina Agrees to Debt Restructuring Deal With The IMF That May Restrict Cryto Usage
Argentina owes the IMF nearly $45 Billion, which was loaned to them in 2018. They are due to pay $19 billion in 2022 and 2023, but have stated they don't have the money to repay. This has led to talks of debt restructuring which has caused protests throughout the country over the past many months. Despite this, the Senate has passed the debt restructuring deal and now it will go to the IMF for approval. Inside this deal reads a statement: "Strengthening financial resilience. While commercial banks remain liquid and well-capitalized, strong bank oversight will continue, especially following the unwinding of pandemic-related regulatory forbearance. To further safeguard financial stability, we are taking important steps to (i) discourage the use of crypto-currencies with a view to preventing money laundering, informality and disintermediation; (ii) further support the current process of digitization of payments to improve the efficiency and costs of payments systems and cash management; and (iii) safeguard financial consumer protection." Many Argentinians have turned to cryptocurrencies such as dollar pegged stablecoins to counter the 52% inflation to the Argentine Peso that has ravaged the country. Argentinians fear an increase in the cost of utilities, an increase in interest rates, a reduction in public works, cutbacks to state employees, pensions and social spending. It's chilling to see the IMF use its financial hold over Argentina to restrict a resource that average citizens have used to maintain their value amidst near hyperinflation. With actions like this from the IMF, could we see other Latin American countries seek an alternative path to raising capital? El Salvador has opened the door with Bitcoin Bonds.