Javier Milei, the libertarian president of Argentina, is spearheading efforts to curb the issuance of Argentine pesos by the country’s central bank. Milei intends to introduce a bill to Congress that would penalize money issuance with jail time, aiming to prevent central bank officials from authorizing such operations.
The proposed law aims to stabilize the money supply while Milei’s administration works towards revitalizing the economy. This initiative precedes Milei’s campaign promise of dollarizing the country, although implementation is not expected in the near term.
In an interview with a local TV channel, Milei outlined the project, which defines seigniorage as a criminal offense. Under the proposed legislation, central bank officials involved in financing the treasury, directly or indirectly, would face imprisonment, including the bank’s president, board members, and government officials endorsing such actions.
However, the bill must undergo deliberation and approval in the Argentine Senate, where Milei has previously encountered resistance. A recent setback involved the repeal of the omnibus law, which aimed to enact libertarian reforms and was criticized for undermining the independence of the Central Bank of Argentina.
Despite challenges, Milei remains steadfast in his vision for Argentina, emphasizing plans to eliminate the Argentine peso and transition towards dollarization. He asserts that the peso will no longer be a viable currency option, reiterating his commitment to pursuing dollarization when feasible.
