Latin America is also interested in BTC, the cryptocurrencies and the technology that supports them. This was evident in the framework of DescentralizAR, an event on Cryptoeconomics and Finance in Argentina that brought together various experts in the area. The last panel of the day at DescentralizAR was “Economists’ Debate on Bitcoin”, and here we bring you the most highlights.
This panel included the participation of Diana Mondino (UCEMA), Agustín Etchebarne (General Director of Freedom and Progress), Ivan Carrino (Deputy Director of the ESEADE Master in Economics and Politics). Furthermore, the panel was moderated by Gonzalo Blousson of Signature.
The main focus of the debate, or the most interesting one, was whether or not to consider BTC a currency. The positions were marked, since there are those who were followers of the Keynesian school and others of the Austrian school.
Can we consider Bitcoin to be currency? Economists Respond at DescentralizAR
Most panelists at DescentralizAR agreed that at this time Bitcoin cannot be considered a currency, but rather an investment asset. However, the disagreement came because of the expectation that some like Ivan have that this can be achieved at some point.
At first Diana Mondino explained that BTC is not a currency. “My opinion is that it is not currency, but it can be assimilated as money. What is clear to me is that it is an investment, an investment instrument“He expressed.
Then, he added that “To my taste (BTC) does not become a currency because it does not meet all the characteristics, such as being a store of value“
Other panelists also commented that BTC was initially seen as high risk. But they added that after a while the fear dropped quite a bit.
Thus, they were able to establish that Bitcoin can be considered more as a crypto asset than a cryptocurrency. When discussing Argentina’s position on this matter, they stressed that this country has adopted an intermediate position, since “the entire Fintech movement, not just Bitcoin, is a positive thing for financial innovation“
Iván Carrino seemed to be the one who was most convinced of the potential of Bitcoin. “Bitcoin is a revolution against central banks, for a Keynesian economist Bitcoin is a great challenge. To some of us who come from the Austrian school of economics it sounds very reasonable“He explained.
The first obstacle it has to be a currency is the incredible volatility it has
When talking about the challenges for Bitcoin to be a currency, the problem of stability was mentioned a lot. “The only way that Bitcoin is really currency is not only with the stability that I already mentioned, but that there is only one pattern; a unitMondino explained.
Given this, we can add that if Bitcoin succeeds, it will be better than the others. This idea is shared by some participants who mentioned that as the economy grows, so must the instruments to carry out transactions.
In the opinion of Agustín Etchebarne: “It will be very difficult to become a currency. It is a speculative asset and has its value as a speculative asset“
However, he recognized that Bitcoin has technological value, especially in the area of privacy. For Etchebarne, the technologies that emerge in the world of cryptocurrencies are useful to promote privacy. According to him, while governments intend to use artificial intelligence for more surveillance and control, those who advocate for blockchain seek to counter this event.
After several discussions about the implications for credits, future payments, a valid conclusion is that Bitcoin may not be the currency itself at this time. However, there is a complete industry with great competition and potential waiting to emerge.
Within this competition it is possible that at some point one will prevail over the rest; that therefore it gains stability and manages to be considered as a currency. This applies more to stablecoins than to Bitcoin. According to Etcheberne, it is in this field that regulators will have the most interest.
If there is something we can say, it is that little by little Latin America has participated more in debates and forums about these alternatives, and DescentralizAR was quite complete to address Bitcoin and its implications. A great step for Argentina.