Argentina's presidential candidate Sergio Massa has promised to have a central bank digital currency (CBDC) if elected. He said this would "fix" Argentina's long-term inflation crisis.
"It is clear to me that inflation is a huge problem in Argentina. We're going to release the digital currency. It will work globally," said the country's second lead candidate.
Massa, who is currently economy minister, rejected the idea of Argentina switching to the US dollar:
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"Dollarization is what problems. Be patriotic and defend our currency, don't encourage the use of the U.S. dollar," he said.
The general elections in Argentina will be held on October 22. Massa's words contradict the other favorite, Javier Millay, writes dir.bg.
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Millay wants Argentina to switch to the US dollar, and is also an advocate of using bitcoin as legal tender. He even threatened to liquidate the country's central bank.
Economists see both proposals as extreme and populist. It is unclear how the adoption of a digital currency will stop inflation. However, it creates a risk of greater government control. Meanwhile, adopting a highly volatile asset like bitcoin can also generate losses.