Argentina’s Presidential Candidate Vows to Implement CBDC Once Elected

As the long pursuit to find the best successor for President Alberto Fernadez nears the end, several Argentine candidates have voiced their opinions on the practical measures to hedge the biting inflation. Speaking at the first presidential debate held on Sunday, October 1, the candidates engaged in an embroiled argument emanating from the current economic downturn in Argentina.

The presidential candidate engaged in wide-ranging trading barbs while pursuing possible solutions to the recent economic slowdown.

Argentine Presidential Candidates Pursuing Measures to Control Inflation

Sergio Massa, the current minister of economy, had a different vision for Argentina that could end the economic malaise. Massa confessed plans to launch the central bank digital currency (CBDC) once he ascended office.

Firstly, the minister shared his heartfelt apologies to the voters for being plagued in economic difficulties for the longest time. Massa admitted that before he became the minister for the economy, the Argentina government made multiple mistakes that triggered the rise of the inflationary spiral.

A recent report indicated that inflation in Argentina tripled in August. The report stated that the inflation rate jumped by 124% in the past few months. At present, the country ranks third with sky-high inflation after Venezuela.

Inflation Rates in Argentina Jumps by Three Digits

In his proposal, Massa plans to launch digital currency in Argentina to address the inflation concerns. He suggested that the proposed digital currency will apply to all Argentine living abroad.

However, Massa highlighted the need for developing effective money laundering regulations to ensure the free flow of digital currency in the Argentine economy. He anticipates that the new rules will eliminate taxes on Argentine investment abroad.

 The minister opposed the idea of dollarizing the Argentina economy to the US currency as a measure to control inflation. Massa urged the Argentine to remain patriotic and support the use of the Argentine Peso. Rather than supporting the use of US sovereign currency, Massa vowed to defend the use of pesos in the country.

Additionally, Massa believes that if elected as the president of Argentina in 15 years, the country will attain standards of living that will rise to compete with those in Italy and France. And if reelected, Massa vows to propel the country to become a developed country comparable to the US and Germany.

Impact of Dollarizing the Argentine Economy

Earlier, Massa’s opponent Javier Milei had suggested the idea of the dollarization of Argentina. The candidate believes that by adopting the US dollar currency, Argentina could expand the government revenue-generating streams. Also, Milei anticipates that the dollar currency will support harmonizing the taxation system and cap government expenditure. 

Milei condemned the existing regulatory approaches that have resulted in the rise of illegal government-owned companies. He proposed that privatization and deregulation of the economy could foster ecomonic development.

Beyond this, Milei plans to adopt an open economy after he ascends to the presidential position. He explained that there would be no need for a central bank if Argentina adopted an open economy. In an earlier report, the 52-year-old politician described the central bank as a scam project that allowed politicians to deceive the public with triple-digit inflation.

Argentina Prepares for Elections

Speaking on Argentina inflation, Patricia Bullrich, the former minister of security, revealed plans to introduce a currency approach once she is elected to the presidential position. In her address, Bullrich plans to adopt a flexible system where the Argentine Peso can co-exist with the US dollar.

Besides the difference between the candidates in economic matters, the presidential candidates agreed to support public education in Argentina. However, the presidential aspirant will also participate in the second debate scheduled on October 8.

In the upcoming debate, the day’s topic will revolve around housing, environmental conservation, and human development. Guided by Argentine laws, the presidential aspirant can share their vision of the country’s future during the debates. The voters are also entitled to participate in the debates to make informed decisions ahead of the October 22 general election.

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