El Salvador’s Bitcoin Debt Architect Says Argentina Needs to Adopt Leading Cryptocurrency to Fix Economic Situation
November 10-13 Argentina was the headquarters of Labitconf, the world’s oldest cryptocurrency and blockchain conference and the most important in the region.
Attended there key national and international benchmarks in the ecosystembetween which stood out Samson Mouformer Head of Strategy at Blockstream and current CEO of JAN3, who was also an architect El Salvador Bitcoin Bond.
These names are also known as “Vulcan bonds“, included in the bill that went to El Salvador’s Congress on Tuesday, because the Central American country will mine cryptocurrency with geothermal energy made from lava.
Mow assures that the world is A leading cryptocurrency adoption boom is cominga “Hyperbitcoinization” which will reduce the use of fiat currencies.
in dialogue with iProUPan expert insists that the digital currency created by Satoshi Nakamoto must change the weight Argentina to solve its economic problems.
Argentina has endemic external debt, how can Bitcoin be more independent from credit agencies?
Argentina can follow El Salvador’s lead and launch your own Bitcoin bonds. So you can raise capital for finance income generating activities which can cover the annual coupon and buy a significant amount of Bitcoin.
In the case of El Salvador, these income-generating activities are bitcoin miningbut it could really be anything else.
Samson Mow with Nayib Bukele, President of El Salvador
Accepting Bitcoin as a currency could too help and shed already dead weight. The best case scenario might be a period switching between three currencies: pesos, dollars and Bitcoinallowing citizens to gradually transition to dollars and bitcoins and abandon the peso.
Do you think Argentina could create a Salvadoran-style state-owned cryptocurrency mining farm to help reduce its foreign debt?
yes i think so can be mined nationally as in El Salvador. I think that natural gas prices In Argentina they are around $0.40 per kilowatt, which is reasonable. There are also many potential hydropower which can be used.
With the presidential election next year and several candidates promoting dollarization, could bitcoinization be any better?
The best way is to use both. we still a the world is denominated in dollars which is rapidly moving towards hyperbitcoinizationso it makes sense to be a couple of steps ahead.
Educating the public about bitcoin, its benefits and features will take some time.
How would bitcoinization solve inflation, poverty, economic development and other chronic problems of the country?
The the root cause of poverty and inflation is a broken currency it prevents people from saving and planning for their future.
If people can exchange goods and services with a reliable currency, then so be it you can invest in a better tomorrowwhat broken coin doesn’t allow that.
With the central bank holding tight reserves and the government implementing restrictions to prevent dollar flight, how could bitcoin create more stability for the peso exchange rate?
Any hard asset can be used to back a fiat currency. I know could accumulate gold or Bitcoin achieve that goal.
However, the Central Bank should buy gold which would be a challenge when the weight keeps falling. Since Argentina has a lot of energy, it could just mine Bitcoin. Namely, buy Bitcoin with electricity.
In my opinion, there is no point in supporting the weightbut if this is a necessary reason to accumulate Bitcoin, then why not?
During your time in the country, did you meet with Argentine politicians and talk about how to take advantage of Bitcoin?
We can’t talk about that right now, but we are always happy to discuss Bitcoin with any leader you want to know what the future of money will look like.
7) Finally, how would you summarize the plan for Argentina not to lose the opportunities offered by Bitcoin?
As I have already mentioned, the national strategic plan should be accept Bitcoin as currency, store Bitcoin in national treasury and mine Bitcoin.