During a recent interview, President Javier Milei stated that the largest obstacle to dollarization in Argentina was that people did not want it. He stressed that even when the government has approved the use of the dollar for financial transactions, people still do not use it.
Key Takeaways:
- Javier Milei admits his dollarization push stalled; citizens favor the peso, complicating future reforms.
- Milei’s currency competition policy, allowing currencies like the dollar to be used, failed, leaving the peso as the default currency.
- After lifting currency restrictions, Scott Bessent and the U.S. intervened in October to stabilize the peso’s value.
President Javier Milei Explains Why Argentina Has Not Adopted The Dollar Yet
President Javier Milei has explained why the process of dollarizing Argentina might be more complex than expected, as it has hit a solid roadblock.
Milei, who campaigned and won the Argentine presidency on the promise of adopting the U.S. dollar as fiat currency, ending the Argentine peso, and disbanding the central bank, acknowledged a newfound obstacle to his plans.
During a recent TV interview, Milei highlighted that the main issue when dollarizing the country was the lack of adoption by Argentines, who have failed to embrace the greenback and continue to use the Argentine peso.
“People don’t want it,” said Milei, referring to using the U.S. dollar instead of the Argentine peso. “We’ve proposed endogenous dollarization. Endogenous. That is, if you want, you can make your transactions in dollars, and yet people don’t. We’ve enacted tax amnesty, and yet people don’t take advantage of it,” he stressed.
Furthermore, Milei highlighted that, “strictly speaking, you can’t force things on people.” The remarks were criticized on social media, with some claiming that Milei had used dollarization as motivation to entice Argentines to vote for him, only to drop the promise later.
In 2024, Milei stated that he would implement a system of currency competition, allowing Argentines to use their currency of choice, including bitcoin, to conduct financial transactions.
He also lifted currency controls partially, establishing a floating system that would allow the dollar to float within a fixed price band. However, this backfired, and Milei had to receive help from the Trump Administration to rein in the dollar exchange rate. “Argentina is a beacon in Latin America. This isn’t a bailout; it’s buying low and selling high. The peso is undervalued,” said U.S. Treasury Secretary Scott Bessent in October.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Trump Threatens to Impose 50% Tariffs on China: Intelligence Says China Plans to Deliver Air-Defense Weapons to Iran
U.S. President Trump threatens to impose an additional 50% tariff on China, claiming China is preparing to deliver air defense systems to Iran. This has heightened tensions between the U.S. and China. Trump’s threat is largely political pressure, and implementation would require legal procedures. China denies providing military aid and calls for restraint. The incident shakes the market, drives up oil prices, and affects the outlook for cryptocurrency.
ChainNewsAbmedia2h ago
Latam Seen as Opportunity Land by Investors Navigating War
Latam markets are emerging as investment opportunities amid the ongoing Middle East conflict, unaffected by the global energy crisis. Currencies in Brazil and Argentina appreciate, and analysts predict increased funds from Asia, driven by high interest rates and resilient commodities.
Coinpedia2h ago
Gold and silver fall across the board, and the BTC/ETH volatility index rises slightly
On April 13, gold and silver prices fell to $4,732.92 per ounce and $74.209 per ounce, respectively. The BTC volatility index rose by 0.42%, and the ETH volatility index rose by 0.31%. The U.S. dollar versus the Chinese yuan and the Japanese yen edged up slightly, major European stock indexes generally fell, while WTI and Brent crude oil prices rose. The Gate platform supports trading for multiple asset types.
GateNews2h ago
The Wall Street Journal: Hong Kong has become an Iran money-laundering hub, with $4.8 billion in underground gold flows exposed
According to a report by The Wall Street Journal, Hong Kong has become a key hub for the movement of Iranian funds, facilitating up to $4.8 billion in financial transactions through shell companies to help Iran evade U.S. sanctions, including oil proceeds and military technology procurement. In addition, Hong Kong’s support has enabled Iran to use the “ghost fleet” to smuggle crude oil and to resist unilateral sanctions, prompting the United States to change its strategy and impose sanctions on the relevant companies.
ChainNewsAbmedia8h ago
TradFi Rise Alert: USDZAR (USD/ZAR) Rises Over 1%
Gate News: According to the latest Gate TradFi data, USDZAR (USD/ZAR) has surged by 1% in a short period. Current volatility is significantly higher than recent averages, indicating increased market activity.
GateNews10h ago
Crude oil prices surged more than 8%, while precious metals came under pressure; gold fell below $4,710.
On April 13, the precious metals market was under pressure, with gold and silver prices falling by 0.86% and 1.70%, respectively. The crypto market volatility index rose, the U.S. dollar against the Chinese yuan and the yen edged up, crude oil prices surged significantly, with WTI up 8.99%. The Gate platform supports trading a variety of traditional financial products.
GateNews14h ago
