Sergio Massa, one of Argentina’s primary candidates for the highest office of president, boldly promised to introduce a central bank digital currency (CBDC) in order to handle the nation’s ongoing inflation crisis at a recent presidential debate. Massa, who is currently Argentina’s Minister of Economy, emphasized the seriousness of the country’s inflation issue and laid forth his proposal for a fix.
In a recent presidential debate, Sergio Massa, one of Argentina’s leading candidates, made a bold pledge to address the country’s persistent inflation crisis by introducing a central bank digital currency (CBDC). Massa, currently serving as the Minister of Economy, highlighted the gravity of Argentina’s inflation problem and outlined his vision for a solution:
“I am clear that inflation is a huge problem in Argentina. 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 firmly opposed the idea of dollarization, emphasizing the importance of defending the Argentine peso as the national currency. He urged citizens to be patriotic and resist the temptation of the U.S. dollar.
The upcoming general election on October 22 is shaping up to be a closely contested race. Massa faces competition from Javier Milei, a pro-Bitcoin and anti-central bank candidate, who emerged victorious in Argentina’s primary election in August. Milei’s campaign promises include adopting the U.S. dollar as Argentina’s currency and abolishing the central bank.
Meanwhile, Patricia Bullrich, the third-leading presidential candidate, envisions a currency regime where both the Argentine peso and the U.S. dollar coexist as legal tender if she wins the election.
The Argentine peso has seen a staggering decline, losing over 99% of its value against the U.S. dollar since December 2023. Argentina’s inflation problem ranks among the most severe in the world, trailing only behind Venezuela and Lebanon.
In January 2023, Sergio Massa manager under the Ministry of Economy unveiled a draft law intended to encourage residents to register their cryptocurrency holdings as part of the government’s attempts to fight money laundering. This “Externalization of Argentine Savings” draft law would require crypto holders to disclose their holdings to the government, offering tax incentives as an encouragement for compliance.
As Argentina’s presidential election draws near, the candidates’ stances on monetary policy, digital currencies, and economic reforms take center stage in a nation grappling with high inflation and economic uncertainty.