Argentina's President Javier Milei has conceded that his flagship promise to dollarize the economy has hit a wall—and the biggest obstacle is the Argentine people themselves. In a recent televised interview, Milei stated bluntly: “People don’t want it.”
Endogenous Dollarization Falls Flat
Milei, who swept to power in 2023 on a platform of abolishing the peso, closing the central bank, and adopting the US dollar, now says that even after legalizing dollar transactions for all financial operations and offering tax amnesties, “people still don’t use the dollar.” He emphasized that “in a strict sense, you cannot force people to do things.” The remarks have sparked backlash on social media, with critics accusing Milei of using dollarization to win votes only to later abandon the plan.
In 2024, Milei introduced a system of “currency competition” allowing Argentines to use any currency they choose, including bitcoin, for transactions. However, the peso remains the default medium of exchange. Bitcoin usage has remained marginal, and the promised dollarization has not materialized endogenously.
US Treasury Steps In After Peso Crisis
Last year, Milei partially lifted capital controls and introduced a floating exchange rate system with a predetermined band for the dollar. The move backfired as speculators piled on the peso, causing severe depreciation. In October 2025, US Treasury Secretary Scott Bessent intervened in Argentina's forex market, stating that “this isn’t a bailout; it’s buying low and selling high—the peso is undervalued.” Bessent's action stabilized the exchange rate but highlighted the external dependence of Milei's economic plan.
Implications for Crypto and Dollarization Models
Milei's setback carries lessons for other countries considering dollarization or bitcoinization. Despite radical top-down policies, societal inertia and ingrained trust in the peso (and fear of US dollar freezes) have proven formidable. The episode also deflates hopes among crypto advocates that Argentina might become a bitcoin legal-tender nation. Milei himself now acknowledges that the path to any dollar-based system is longer and messier than he imagined.