In a recent television interview, Argentine President Javier Milei admitted that the biggest obstacle to his signature dollarization plan is that the public simply does not want to use the US dollar. “The people don’t want it,” Milei said, despite his government having approved the use of the dollar for financial transactions and enacted tax amnesties. He noted that citizens continue to hold and transact in the Argentine peso, frustrating his efforts to shift the economy away from the local currency.
Milei Acknowledges Dollarization Stalled
Milei, who won the presidency in 2023 on a radical platform of abolishing the peso and the central bank, had initially promised full dollarization. However, after taking office, he pivoted to an “endogenous dollarization” strategy, allowing individuals to choose their preferred currency for transactions, including cryptocurrencies like Bitcoin. “We proposed an endogenous dollarization… meaning if you want, you can conduct your transactions in dollars, and yet people do not do it,” he explained. “Strictly speaking, you cannot force people to do things.” The admission drew sharp criticism on social media, with many accusing Milei of using dollarization as a campaign gimmick only to abandon it once in power.
Monetary Competition Policy Fails to Gain Traction
In 2024, Milei implemented a system of monetary competition, permitting Argentines to use any currency, including the dollar and Bitcoin, for transactions. He partially lifted capital controls and established a floating exchange rate with a fixed band. Instead of migrating to the dollar, the public remained loyal to the peso, creating downward pressure on the currency. The policy backfired, forcing Milei to seek external assistance to stabilize the foreign exchange market. The intervention came from an unexpected source—the United States Treasury.
US Treasury Intervenes in Argentine Forex Market
In October 2025, US Treasury Secretary Scott Bessent announced a new intervention in Argentine foreign exchange markets to stabilize the peso. “Argentina is a beacon in Latin America. This is not a bailout; it’s buying cheap and selling dear. The peso is undervalued,” Bessent stated. The intervention underscored the severity of Argentina’s economic situation and intensified doubts about Milei’s ability to fulfill his campaign promises. Observers noted that the US involvement was not a pure rescue but a strategic move to support a neighboring ally amid political turbulence.
The dollarization stalemate highlights deep-rooted challenges in Argentina’s economic psyche. Decades of hyperinflation, currency controls, and failed reforms have made citizens wary of drastic changes. While Milei’s pro-Bitcoin stance gained global attention, it failed to convert ordinary Argentines who prefer the familiarity of the peso. With the US Treasury now acting as a backstop, the future of Argentina’s monetary policy remains uncertain. Will Milei push forward with dollarization despite public resistance, or will the peso survive as the primary currency? The answer may determine Argentina’s economic trajectory for years to come.