Argentina has started a coinage boom. When will China’s ban end?Argentine President Javier Milley has expressed a laissez-faire stance on provinces issuing their own currencies.This policy shift was highlighted following public conversations between President Milais and La Rioja Governor Ricardo Quintera. In an interview with Miter radio on January 14, President Mire confirmed his decision not to challenge the legal creation of the local currency by provincial authorities.Quintera emphasized that he believes the market will ultimately determine the feasibility of these projects. However, Mire warned that there could be pitfalls in such efforts, particularly when it comes to inflation. "Those who receive quasi-monetary payments from irresponsible governors will see significant revenue losses," he warned.The governor of La Rioja has been a strong supporter of the introduction of a separate currency in the province. The move comes after President Milais devalued the Argentine peso by 50% since taking office on December 10.The decision is part of a broader strategy to counter Argentina's surge in inflation, which has reached its highest level in more than three decades. Additionally, the new government has reduced the amount of funds allocated to the provinces from the federal budget.Quintela criticized the measures as an "abandonment of the state" and pointed to the urgent need to pay wages, including for police. He therefore urged local legislators to establish the legal framework needed to mint local currency. A different view was expressed by Axel Kisilov, the governor of the province of Buenos Aires, who is already embarking on the process of issuing a local currency.Compared to Argentina, provincial governments have chosen a more laissez-faire stance, giving provinces greater autonomy over monetary policy to find unique solutions to problems such as inflation. China has repeatedly emphasized the issue of maintaining financial stability and avoiding potential risks.The two countries' different choices in monetary policy also reflect different views on the country's overall economic health. China expressed its concerns about the disruption of the original stable ecology of the financial market through the ban, while Argentina needs to break all boats and relax the monetary power of provincial governments in an attempt to deal with severe domestic economic problems such as inflation through local innovation.China still needs a strong dose of medicine to open up currency speculation
