Argentinian presidential candidate Sergio Massa has committed to introducing a central bank digital currency (CBDC) should he secure the presidency, aiming to address the prolonged issue of hyperinflation in Argentina.
During a presidential debate on October 2, Massa, who ranks as the second-leading candidate in the country, acknowledged the severe inflation problem in Argentina and outlined his strategy for resolving it:
“We are going to launch the digital currency in Argentina. […] We are going to do it globally for all of Argentina accompanied by a laundering law that allows those who have money abroad to bring it and use it freely without new taxes in parallel.”
Massa, who presently holds the position of Minister of Economy, dismissed the notion of adopting the United States dollar as a solution, stating:
“The dollarization approach only fuels the allure of the dollar. Let’s stand up for our own currency, be patriotic, and safeguard it, rather than promoting the adoption of the U.S. dollar.”
Tight Race Predicted as Argentina’s General Election Nears with Milei and Massa Leading the Way
Argentina’s general election is scheduled for October 22, and two out of three major polls indicate that Massa is marginally behind Javier Milei, a pro-Bitcoin candidate who opposes the existence of Argentina’s central bank and emerged victorious in the country’s primary election in August.
Data from the American think tank AS/COA suggests that Massa is likely to garner the most support in the Buenos Aires province, which is home to 16.6 million of the country’s 46 million inhabitants, while Milei enjoys greater backing in the more rural regions.
Argentinian Presidential Candidate Offers Contrasting Monetary Visions amid Economic Challenges
Milei has previously expressed a desire to replace Argentina’s currency with the United States dollar. As an economist and libertarian, Milei has long been skeptical of central banking, and one of his campaign promises is to eliminate Argentina’s central bank.
He has also characterized Bitcoin as a response to “central bank manipulation” and argued that the Argentine peso enables politicians to exploit inflation to the detriment of the country’s citizens.
Meanwhile, Argentina’s third-ranking presidential candidate, Patricia Bullrich, has indicated that she would advocate for a dual currency system in which the Argentine peso and the U.S. dollar coexist as legal tender if she were to win the election.
It’s important to note that the Argentine peso has experienced a staggering depreciation of over 99% against the U.S. dollar since December 2023. Most available data indicates that Argentina’s inflation rate ranks as the third highest globally, trailing only behind Venezuela and Lebanon.