Sergio Massa Pledges to Launch CBDC to Tackle Inflation Crisis
Argentinian presidential candidate Sergio Massa has vowed to introduce a central bank digital currency (CBDC) if elected, as a solution to the country’s longstanding inflation problem. In an October 2nd presidential debate, Massa acknowledged the severity of Argentina’s inflation crisis and outlined his plan:
“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 currently serves as Minister of Economy, dismissed the idea of adopting the US dollar as Argentina’s currency and emphasized the importance of defending their own currency.
Massa Competes with Pro-Bitcoin Candidate Javier Milei
The general election in Argentina is set for October 22nd. According to two out of three major voting polls, Massa is slightly behind pro-Bitcoin and anti-central bank candidate Javier Milei, who emerged victorious in August’s primary election. Data from American think tank AS/COA suggests that Massa will likely gain significant support in Buenos Aires province, while Milei has majority backing in rural areas.
Milei, an economist and libertarian, has long been critical of central banking and expressed interest in adopting the US dollar as Argentina’s currency. As part of his campaign promise, he aims to abolish the country’s central bank.
Third-Place Candidate Bullrich Proposes Coexistence of Peso and Dollar
Patricia Bullrich, the third-leading presidential candidate in Argentina, reportedly plans to implement a currency regime where both the Argentine peso and the US dollar coexist as legal tender if she wins the election. The Argentine peso has depreciated over 99% against the US dollar since December 2023.
Argentina currently suffers from one of the highest inflation rates in the world, trailing only Venezuela and Lebanon.
Hot Take: Massa’s CBDC Proposal Offers Hope for Inflation Crisis
Sergio Massa’s pledge to launch a central bank digital currency (CBDC) in Argentina presents a potential solution to the country’s severe inflation crisis. By introducing a CBDC and implementing a laundering law that allows the repatriation of funds without additional taxes, Massa aims to stabilize the economy and provide citizens with a reliable currency. This proposal sets him apart from his competitors, including pro-Bitcoin candidate Javier Milei, who advocates for dollarization. As the general election approaches, it remains to be seen whether Massa’s plan resonates with voters and if his promise of a CBDC can effectively address Argentina’s inflation problem.
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