Argentinian Presidential Candidate Pledges to Fight Inflation with Digital Currency
Summary:
Argentinian presidential candidate Sergio Massa promises to introduce a central bank digital currency (CBDC) to tackle the nation's enduring inflation crisis if he wins the upcoming election. Outlining his intent not to switch to the US dollar, Massa trails slightly behind Javier Milei, a Bitcoin proponent, in polls. Milei's aim is to abolish the central bank and adopt the US dollar. Patricia Bullrich, another candidate, suggests a joint currency regime with both the Argentine peso and the US dollar. The peso has substantially depreciated since December 2023, making Argentinian inflation the third highest worldwide.
Sergio Massa, a hopeful for the presidential position in Argentina, promises to introduce a central bank digital currency (CBDC) to alleviate Argentina's persistent inflation issue if he secures the presidency. "It's evident that inflation is a significant issue in Argentina," remarked the country's main opposition candidate during a presidential debate on October 2, discussing his strategy to address Argentina's crippling inflation. He declared, "We intend to establish a digital currency in Argentina, globally accessible for all of Argentina. This will be facilitated by an anti-money laundering law that allows those with funds overseas to repatriate and freely use them without incurring additional taxes."
As Argentina's Economy Minister, Massa rejected the notion of Argentina adopting the US dollar, saying, "The lure of the dollar stems from dollarization. Show patriotism, support our currency, and refrain from encouraging the use of the US dollar."
The general elections in Argentina are scheduled for October 22. According to two of three major polls, Massa narrowly trails Javier Milei, a Bitcoin advocate and adversary of the central bank, who emerged victorious in Argentina's primary election in August.
Research from US-based think-tank AS/COA indicates that Massa will likely receive the majority of the support in Buenos Aires province, home to over one-third of the population, while Milei enjoys robust backing in the country's more rural regions.
Milei, an economist and libertarian, is a long-standing critic of central banks and has previously expressed a desire to adopt the US dollar as Argentina's currency. His campaign aims to dismantle Argentina's central bank. He once described Bitcoin as a countermeasure against "central bank swindlers" and accused politicians of exploiting Argentines with inflation via the Argentine peso.
Patricia Bullrich, Argentina's third most favored presidential candidate, allegedly intends to create a dual currency regime, where both the Argentine peso and the US dollar will be used as legal tender, if she secures victory in the election.
The Argentine peso has depreciated by more than 99% against the US dollar since December 2023. Available data ranks Argentina's inflation third highest globally, surpassed only by Venezuela and Lebanon.
Published At
10/3/2023 11:43:45 PM
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