Argentina’s President Urged By Tim Draper To Make Bitcoin A National Currency

News | March 26, 2019 By:

Tim Draper, the billionaire venture capitalist and early bitcoin supporter, has called on the president of Argentina to legalize bitcoin in order to improve the economic situation in the country.

Draper reportedly met with Argentine president Mauricio Macri last week, ahead of a FinTech and Blockchain summit organized by his dedicated Argentine fund, Draper Cygnus. During the meeting, Draper advised the president to legalize bitcoin and use it to replace the Argentine peso.

“I suggested that he make bitcoin a national currency and to bring in 5G and let the market figure it out and build all the roads and everything else for him,” Draper said. “Because they will, because everybody’s gonna come here if we’ve got, if he’s made the decision to go bitcoin and 5G.”

Draper said that he proposed a bet that if the peso would be valued more than bitcoin, he would double his investment that he was making for the country.

“But if bitcoin gained a higher rate than the peso, they would have to declare it as a national currency,” he said. “That would be a perfect decision, as there’s a lack of confidence in this coin.”

High inflation has been a weakness of the Argentine economy for decades. Inflation has been unofficially estimated to be running at around 25 percent annually since 2008, despite official statistics indicating less than half that figure. The country’s currency declined by about 50 percent last year to more than 38 Argentine pesos per US Dollar, and today is under a stand-by program from the International Monetary Fund (IMF).

In an interview following the meeting, Draper said Argentina is ripe for disruption using blockchain technology and bitcoin, arguing that the technology will provide complete changes in banking, commerce, and financial systems.

“Through blockchain, you build a contract, and with bitcoin, you can make sure that you are making the premium payments and you can make sure that someone who makes a claim receives their payment immediately,” Draper said. “That can go for social security, for health insurance for all these things that governments historically have provided. Now governments have a better tool to provide all this and have a tool that can go beyond borders, which would stop being tribes to become a great world giving us services.”