The bank concludes that – given limited liquidity – it is necessary to update the originally established monetary base goals to avoid excessive monetary contraction. The update in question is a growth of the monetary base of 2.5% per month in September and October.
The Committee of Monetary Policy (COPOM) of Argentina’s Central Bank (BCRA) announced the intention to increase the monetary base by 2.5% per month for the next two months on Sept. 18.
“To ensure monetary and financial stability”
Per the announcement, the move is meant to ensure monetary and financial stability. The bank notes that it believes that the inflation of the Argentine peso caused by depreciation suggests a reduction in real monetary supply. The new exchange rate also lets observers project a real demand for sustained money, as the bank sees it.
In the case of September, the variation is considered with respect to the bimonthly goal of July-August, leaving the monetary base objective for the current month at 1,377 billion Argentine pesos ($24.3 billion). The goals will be updated again based on the net exchange operations carried out by the BCRA from the date of publication of the statement.
Liquidity Letters interest rate increase
Furthermore – with the declared intention of guaranteeing the reductive nature of the monetary policy – COPOM decided to undertake a further monetary policy measure. More precisely, it decided to increase the lower limit for the interest rate of the Liquidity Letters (LELIQ) from the current 58% to 78% in September, during the inflationary peak. For October, this limit is set at 68%.
The commission hopes that both measures will allow the country to sustain a positive real interest rate and resume the deflation process from October. Lastly, the announcement also specifies that both the proposals have been unanimously approved by the COPOM members.
“Bitcoin fixes this”
Argentinian Bitcoin (BTC) and open blockchain consultant Camilo Jorajuría de León pointed out the decision of his local central bank in a tweet published on Sept. 19 and commented:
“This is how local politicians steal everyone’s future from under their noses. Bitcoin fixes this.”
In August, after the sharp devaluation of the Argentine peso, Bitcoin trading saw a 4% premium in Argentina.
As Cointelegraph reported at the end of July, Morgan Creek Digital Assets co-founder Anthony Pompliano says the European Central Bank’s expected dovish turn will be “rocket fuel” for Bitcoin.
Square Crypto Hires Lightning, Libra Developers for ‘Bitcoin Dream Team’
Square Crypto, the division of the publicly traded payments company that focuses exclusively on bitcoin, just announced three new hires to work on open source projects.
Among them is Facebook and BitGo alum Arik Sosman, most recently a member of the social media giant’s Calibra subsidiary. He told CoinDesk:
“My personal areas of interest are privacy and [Layer 2] scalability, though we’ll see what the team ultimately ends up working on. … I’m extremely excited and grateful for the opportunity to join this amazing team, and to focus on contributing to the most important cryptocurrency and ecosystem.”
The other two notable hires, Lightning Labs alum Valentine Wallace and Google alum Jeffrey Czyz, are joining to help “grow the FOSS [free and open software] developer base,” according to company tweets.
Square Crypto is still hiring as well, looking for a designer to join the team led by former Google product director Steve Lee.
“Software engineering is far from the only realm people can make contributions to open-source projects in,” Sosman said. “Steve himself being a product manager is but one example.”
According to another company tweet Thursday, Square Crypto is still “deciding what our first project will be,” adding:
“There’s no project we won’t consider, as long as it improves or proliferates bitcoin.”