Argentinian Presidential Candidate Proposes CBDC to Tackle Hyperinflation"
Sergio Massa, a prominent Argentinian presidential candidate, has made a bold promise to launch a central bank digital currency (CBDC) if elected. Massa sees this CBDC as a solution to Argentina's enduring problem of hyperinflation.
During a presidential debate on October 2, Massa, the second-leading candidate in the race, highlighted the severity of the inflation crisis in Argentina and outlined his plan to address it. He stated, "I am clear that inflation is a huge problem in Argentina," and went on to describe his proposed solution:
"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 rejected the idea of adopting the United States dollar as the country's currency, emphasizing the importance of preserving Argentina's currency. He urged citizens to be patriotic and defend their own currency rather than promoting the use of the U.S. dollar.
The upcoming general election in Argentina is scheduled for October 22, and Massa is facing stiff competition from Javier Milei, a pro-Bitcoin and anti-central bank candidate who emerged victorious in Argentina's primary election in August. Data from the American think tank AS/COA suggests that Massa is likely to garner strong support in the Buenos Aires province, home to a significant portion of the country's population. In contrast, Milei enjoys majority support in rural areas.
Milei has been an advocate for adopting the U.S. dollar as Argentina's currency and has been critical of central banking. His campaign pledge includes the abolition of Argentina's central bank. Milei has previously praised Bitcoin as a reaction against "central bank scammers" and has criticized the Argentine peso for enabling political manipulation through inflation.
Another presidential candidate, Patricia Bullrich, currently the third-leading contender, has proposed a dual currency regime in which both the Argentine peso and the U.S. dollar coexist as legal tender if she wins the election.
Argentina has faced significant economic challenges, including hyperinflation, which has eroded the value of the Argentine peso dramatically. Most data indicates that Argentina has one of the highest inflation rates globally, trailing only behind Venezuela and Lebanon. Massa's proposal to introduce a CBDC reflects the ongoing debate in the country about the path forward to address these economic issues.