Allowing the provinces of Argentina to distribute their own money

Argentina's president, Javier Millay, has vowed not to oppose attempts by provinces to launch their own currency after a public exchange between Milley and La Rioja state governor Ricardo Quintella.

On January 14, in an interview with Radio Mitre, Miley confirmed that he is not legally opposed to the creation of local currencies by regional authorities in Argentina. The president believes that the market will ultimately decide on the cost of the projects, but he warned that “funds” will increase inflation and that those who accept them are being cheated.

Those who receive payments in quasi-currency from irresponsible buyers will clearly see a loss of income. […] Quasi-currency inflation, which is not absorbed by fiscal adjustment, is absorbed from them.

Quintella, the governor of La Rioja, plans to create a separate currency for the state after devaluing the Argentine peso by 50% after Miley takes office on Dec. 10, 2023, to tame the country's skyrocketing inflation. In 32 years. The new president also reduced the funds allocated to the states from the federal budget.

Quintella called these measures “abandoned by the nation” and called on the need to pay police officers, asking La Rioja's legislature to create a legal basis for spending local money. In December 2023, the governor of the state of Buenos Aires, Axel Kisyloff, also officially considered the issue of the local currency.

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Meanwhile, in Argentina's third most populous city of Rosario, a local landlord and tenant have struck a deal to pay rent in Bitcoin (BTC). The contract is the first of its kind in Argentina, due to the recent legal reforms of the new presidential administration.

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