Argentinian Provinces Mull Stablecoin-powered Answer to Financial Mess

More Argentinian provincial governors are considering the issuance of locally issued digital tokens or stablecoins.

As previously reported on Cryptonews.com, Josefina Canale, the provincial deputy of Mendoza, in the northern-central part of the country, has already gone public this week with claims that she is “studying” stablecoin proposals.

But per La Politica, provincial governors across the country are following suit, and could be forced to act sooner rather than later as many areas experience a shortfall in cash supplies – as well as escalating national debt-related problems.

Many provinces have been hoping the central government will come to the rescue, but others may prefer to take matters into their own hands with a more proactive stance that makes use of blockchain technology.

La Politica’s Marcia Dell’Oca writes,

“For the provinces, the possibility of [local stablecoin issuance] is becoming increasingly close. […] There are few [other] options remaining for local governors.”

It appears that while the central government apparently drags its heels on debt-related discussions, local authorities could decide to move.

Advocates will point to the Buenos Aires municipality of Marcos Paz, which in summer last year released a “cryptocurrency” named the Marcos Paz Asset and a compatible wallet app, designed to boost local spending and reduce the tax burden on local residents.

The Marcos Paz initiative has seen municipality residents receive tokens as credit for paying their taxes on time and using a local government-run bicycle share network. Local stores have also been encouraged to start accepting the token.

Argentine governors will likely cast an eye at nations in the Far East – such as South Korea and Japan. While Tokyo is developing ambitious Olympic Games-related plans for its own city-based stablecoin, scores of local stablecoins have already been launched in South Korea, many with the backing of big domestic businesses.