Argentina’s presidential candidate, Sergio Massa, has proposed the introduction of a Central Bank Digital Currency (CBDC) as a solution to the country’s worsening inflation crisis. As the current Economy Minister, Massa believes that a digital currency would help bring the country’s economy in line with global standards.
Addressing Hyperinflation and Poverty Rate
The issue of hyperinflation and the resulting high poverty rate is a central concern for all political parties in the upcoming election. Recent data reveals that Argentina’s annual inflation stands at a staggering 115%, with a poverty rate of 40%. With these statistics in mind, Massa advocates for the implementation of a CBDC to address these pressing issues.
“Just like your children propose to trade with their phones or cards in their ‘platform economies,’ we will do it globally for all of Argentina.”
In proposing the CBDC, Massa draws parallels with the future of finance and the ease of digital transactions. He emphasizes the need for Argentina to embrace this technological advancement to bring financial inclusivity to all its citizens.
Rejecting the Idea of Dollarization
During the debate, Massa also voiced his opposition to the plans of pro-Bitcoin candidate Javier Milei, who suggested adopting the US dollar as a means to combat inflation. Massa urges Argentinians to reject this policy, stating that it would hinder the implementation of effective future economic strategies.
“Dollarization is what generates the temptation of the dollar. Be patriots [and] defend our currency, do not promote the use of it [the U.S. dollar].”
Milei, a strong supporter of Bitcoin, has criticized the Central Bank, advocating for its complete abolition. He views fiat currency as a tool for politicians to exploit inflation and detrimentally impact the economy.
The upcoming election, scheduled for October 22, indicates a slight lead for Milei according to two polls. However, concerns have been raised by Manuel Ferrari, a Bitcoin Argentina board member, who believes that the focus on CBDC distracts from other critical issues such as rampant corruption leading to triple-digit inflation.
“Argentina has over 50% of its commerce that operates informally and with cash… This proposal would destroy what supports most of our country.”
These concerns are further echoed in the United States, where critics argue against the introduction of a CBDC, perceiving it as a form of government control. However, crypto-friendly lawmakers and Florida Governor Ron DeSantis are pushing back against anti-crypto policies introduced by the Biden administration, promising to protect the crypto industry.
