52 US. Alternatively, if these projects prove to be successful, the BCRA could choose to develop its own CBDC. However, due to the history of instability and lack of trust from the citizens, a digital currency developed by the BCRA is unlikely to solve this problem. If the BCRA enacts monetary policy based on the political party that is in power, the peso will continue to face inflation and not be trusted, whether in physical or digital form. A CBDC offers benefits, such as increased access to simple account ownership and mobile payments; however, it can be effective only if the leaders in place pursue stable economic policies. Conclusion Ultimately, there is a broad range of fintech solutions that can help build a financially inclusive future for Argentina. People already are moving toward a variety of digital currencies because they are a relatively stable asset to save money for the future, are not subject to the same currency controls as the ARS, and provide financial systems that previously were difficult for those in the informal economy to access. As individuals make this shift, the Argentine government and BCRA will need to continue to balance the support for innovation in this budding sector, while protecting the peso. Argentine citizens moving entirely away from the peso to cryptocurrencies, such as Bitcoin or DAI, is an unrealistic scenario. However, this shift away from the peso could weaken the capability of BCRA to react to the shocks of the future. Raising interest rates on the peso will not have the same intended effect if citizens are relying on foreign digital currencies that the government cannot control. In order to avoid this reality, it will be important for Argentina to pass legislation that continues to support entrepreneurship in the fintech sector, while adapting to all the technologies that address the core issues of financial exclusion. Innovation in new and existing fintech solutions will continue to promote financial inclusion, giving Argentines a more stable economic future.
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