Argentina Stops Blockchain Company Registrations for 180 Days: A Step Backwards?

What’s Happening in Argentina?

In a stunning turn of events, the Argentine government recently announced a six-month suspension of its blockchain-based registration system for new companies. According to Ricardo Nissen, the head of the General Inspectorate of Justice (IGJ), this decision aims to bring some order back to the registration process. Starting in the second week of March, hopeful entrepreneurs will have to trade in their digital forms for good old-fashioned paper documentation.

Back to the Future: Paperwork Over Progress

With the change, all Companies for Simplified Shares (SAS) must now be registered on paper through the Argentine Public Registry. This is quite the shift, considering that this digital system—implemented back in 2017—allowed for approximately 20,000 companies to spring up using the power of tech. Quite the impressive feat, huh?

Speed vs. Control: A Confusing Choice

The now-suspended fast-track system dramatically reduced registration times from a sluggish 55 days to just 24 hours. But, Nissen voiced a critical concern, stating, “There is no control. Macrismo thought that by enabling the constitution of companies in 24 hours we would have a lot of investments. It was crazy.” Fast, perhaps. Effective? Not so much, according to the powers that be.

The Response from Business Leaders

Reactions from the business community have been less than enthusiastic. The Association of Entrepreneurs of Argentina (ASEA) has called the government’s decision a retrogressive move. They described the previous digital system as a beacon of transparency, stating, “Now, we will have to return to a 19th-century system, completely anachronistic and permeable to any adulteration.” You know you’re in trouble when you’re being compared to an era where oil lamps were all the rage!

A Unique Position on the Global Stage

As it stands, Argentina may become the only country to literally roll back its registration processes from a sleek digital system to plain, old-fashioned paper. Alejandro Ramírez from the ASEA argues that this makes Argentina unique in the unflattering sense of being stuck in the past. Talk about taking a step backward while everyone else is racing forward!

Conclusion: The Road Ahead

So, what’s next for Argentina? Is it doomed to wander the paperwork wasteland? Or will it find a way back to the digital light? Only time will tell, but hopefully, the nation can reconcile its desire for oversight with the efficiency of modern technology.