In a recent televised interview, Argentine President Javier Milei made a startling admission: the greatest barrier to his flagship dollarization policy is that the Argentine people simply do not want the U.S. dollar. Milei, who swept into office on a promise to abolish the central bank and adopt the dollar as legal tender, now says, “You can't force things on people.” The remarks signal a major retreat from one of the most radical economic agendas in Latin America.
Milei: 'People Don't Want It' – The Dollarization Roadblock
“The biggest problem is that people don't want it,” Milei stated during the interview, referring to the use of the dollar over the Argentine peso. He emphasized that his government had already implemented what he called “endogenous dollarization” – allowing citizens to freely conduct transactions in dollars and offering tax amnesties to encourage dollar holdings. Yet, Argentines have overwhelmingly stuck with the peso. “Strictly speaking, you cannot force things on people,” he stressed. The comments quickly drew backlash on social media, with critics accusing Milei of using dollarization as a campaign gimmick only to abandon it once in power.
In 2024, Milei introduced a system of currency competition, permitting the use of any currency – including bitcoin – for financial transactions. He also partially lifted currency controls, establishing a floating exchange rate within a fixed band. However, the policy backfired, sending the dollar soaring against the peso. Desperate to stabilize the market, Milei turned to the Trump administration. U.S. Treasury Secretary Scott Bessent intervened in October 2026, stating, “Argentina is a beacon in Latin America. This isn't a bailout; it's buying low and selling high. The peso is undervalued.” The U.S. Treasury subsequently purchased Argentine peso assets to support the currency, effectively propping up the very currency Milei had vowed to eliminate.
Why Currency Competition Failed
Economists point to deep-rooted habit and trust issues. Despite legalization, most Argentine salaries, taxes, and retail prices are still denominated in pesos. The public fears that full dollarization could trigger deflation, unemployment, and loss of sovereignty. Meanwhile, Milei has not followed through on dissolving the central bank, and the bank continues to intervene in foreign exchange markets, creating a confusing hybrid system.
Milei had also championed bitcoin as part of the currency competition, but adoption has been modest. While Argentine crypto usage increased during periods of high inflation, a Bloomberg report indicates that daily bitcoin trading volumes in Argentina have fallen 30% since mid-2025. Most Argentines treat crypto as a speculative hedge rather than a transactional currency.
International Implications and What's Next
Milei's backtracking has regional repercussions. Other Latin American experiments with dollarization or bitcoinization, such as El Salvador's, face similar skepticism. The U.S. Treasury's overt intervention underscores Washington’s strategic interest in Argentine stability—both geopolitical and commercial. Bessent’s “undervalued peso” comment suggests the U.S. may continue to buy Argentine assets, a policy at odds with genuine dollarization.
Going forward, Milei faces an unpalatable choice: push through forced dollarization (abolishing the peso by decree), which carries immense political risk, or adopt a more pragmatic, gradual approach that could take years. With his approval ratings sliding amid persistent economic stagnation, the window for radical reform may be closing. Whether Argentina will revert to peso dominance or explore alternative monetary paths—including cryptocurrency—remains to be seen.
In summary, Milei’s dollarization dream has collided with Argentine reality. The people's preference for the peso has forced a humble admission from a president once regarded as the region's most fervent free-market radical. The crypto community, which had hoped for a dollarized or bitcoin-friendly Argentina, now watches with caution.