Navigating Argentina's Economic Crossroads: The Dollarization Dilemma

I am not letting go of my beloved Argentina. Why beloved? Because here will be a very interesting economic experiment.

Usually, any drug, before entering the market, passes many tests. That is, first make sure of its effectiveness and safety. It would be insane to take a new active substance and immediately direct it to pharmacies. We can’t even imagine what kind of long-term complications this drug could have, what hidden side effects - it takes a lot of experimentation and years of work to figure it all out.

The Argentine economy now urgently needs medicine. Moreover, the drug must be powerful and extraordinary, as all traditional methods of treatment have already been tried. The big question, though, is it possible to test a fairly risky remedy on millions of Argentines? 

Let me remind you, Argentina is a country with a huge external debt and inflation of 160% per year. The previous government failed to meet economic challenges, and the country elected a new president who was going to elections with radical proposals: "replace the peso by the dollar, eliminate the Central Bank..." Most likely, dollarization refers to a move to cryptocurrency-based Tether (USDT).

I am not saying that Argentina’s new president is wrong. Perhaps his economic measures will prove to be a real panacea and the country will prosper. It’s possible, though I admit it’s unlikely. I just want to draw attention to the enormous responsibility that young Argentine reformers have. It must be understood that if the experiment fails, the cryptocurrency as part of the financial system will also be discredited.

As for dollarization, including the use of stablecoin, it is only inside the fiat system. Major flaws and contradictions remain. 

I understand the motives of the reformers, I support the need for fundamental reforms, but I believe that the proposed reforms are too risky and insufficient. 

#ArgentinaEconomy #EconomicExperiment #CryptocurrencyRisk #Reforming