Argentine province analyzes putting a digital currency into circulation

 

According to information published in the prestigious local media iProUP, the province of Cordoba in Argentina is thinking of circulating a digital token for payments within its jurisdiction.

The information reported in the media, gives an account of the proposal made by the legislature of the Argentine province to generate the decentralized solution as a means of voluntary payment among the citizens of Cordoba.

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Initially, the Committee on Economy, Budget, Public Management and Innovation of the Legislature of the province is the proponent of using tokens in the field of local economy through the legislator Leonardo Limia.

As outlined by the media, the proposal is to tokenize the employment programs and compensate half of the subsidy in the country’s fiat currency and the rest in tokens through a coinage.

The beneficiaries will be able to use the tokens received in the province for everyday activities such as checking their balance on their mobile phones, paying in allied shops with the respective QR code and having access to discounts for the token’s propagation as a means of mass payment.

At the legal level, partner businesses can use the tokens to pay taxes to the municipality.

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The experts consulted on this matter already make the similarity of its use with what is currently Mercado Pago in Argentina.

For the time being, the legislature is in the process of creating the tokenized payment system, to later begin its dissemination and respective consensus with the chambers of commerce for its acceptance, according to the information disclosed.

According to the experts, this type of initiative could generate a circular economy that would boost the province in difficult times of pandemic, generating special incentives to pay for public services, provincial taxes and any other type of local obligation with the city council.

Similar initiatives

The impulse that is being given to the tokenization of the local economy since the Cordoba legislature is something new at the public level, but from the other side of the sidewalk private initiatives have emerged in the same province in the recent past.

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Last April Cointelegraph reviewed the local proposal of the QXA token promoted by the company Qaixa.

In that opportunity, Maximiliano Scandogliero, CEO of the company talked about the proposal of using an ecosystem of Blockchain solutions and a token for the local economy.

„The crypto-currency (the QXA token) would circulate more intensely among local suppliers, who in turn could download it into their supply chain, also as additional elements to the salary -basket ticket type- and to fulfill obligations with the tax authorities. The latter, upon receiving it, may return to dump the perceived crypto-currency in the ‚provincial purchase‘, and as an additional to wages, among other uses,“ they detailed in a presentation shared with Cointelegraph in Spanish.

The token would be projected on Quorum’s Corona Millionaire under the ERC-20 standard and would allow a set of solutions for its implementation that would go from a coin purse to marketplaces for its dissemination.

With economies increasingly hit by the coronavirus pandemic and technological challenges that demand greater use of ‚contactless‘ payments to control its spread, the use of Blockchain technology as solutions in the new decentralized finance is becoming more frequent.