Dollarization: for the founder of Ualá, Milei’s proposal would be healthy for credit

The proposal of dollarize the Argentine economy raised by the presidential candidate Javier Milei has generated an intense debate. According to Pierpaolo Barbieri, founder Ualathis measure could have important implications, especially regarding long-term loans and the adoption of digital payments.

Barbieri affirms that the dollarization of the economy would be beneficial for access to long-term credit in a context in which mortgages are, mostly, inaccessible to a large part of the population. In this sense, the measure proposed by Milei could open new opportunities for more people to access financing for long-term projects.

Furthermore, Barbieri maintains that dollarization would accelerate the transition to digital payments in Argentina, a trend that gained major momentum during the pandemic. Thus, the 36-year-old Argentine businessman expressed his support for the dollarization plan promoted by Javier Milei, although he did not offer a personal opinion on the measure. However, he did highlight his perception that dollarization could benefit Argentina and improve access to credit in the country.

In summary, the proposal to dollarize the Argentine economy proposed by Milei is seen by Barbieri as a possible solution to address credit accessibility and accelerate the adoption of digital payments in the country.

Dollarization: discrepancies in the Milei team

“The monetary reform proposed by Milei is based on freedom. Continuing to cling to the idea that the State should have a monopoly on currency is absurd. We offer the freedom to choose the currency that each person wants to use.. People are going to eliminate the weight, not the government“Ocampo wrote on his Twitter account, where he received a barrage of criticism.

And Internet users quickly reminded the economist, now from Libertad Avanza, that this is what Bullrich’s economic team proposes. One of the first to cross to Ocampo was Carlos Maslatonwho reproached: “Ocampo, then you renounce dollarization and demonetization of the peso? Clarify it because the lack of definition is creating a tremendous fuss. The free market and the floating exchange rate have been the world norm since 1971. It is good that you do it, but it is not new and there is no panic.” Another user replied: “That is bimonetarism, as Melconian proposes“.

At the Bloomberg event and without giving details of how it will go ahead dollarization and the closure of the Central Bank, Ocampo assured: “We intend for the dollar to have legal tender, for the dollar to circulate freely. That we can not only use it to buy properties and works of art“, said.

“There are those who object to dollarization, and it is very good to object to dollarization, those who want to object to it, who propose a better alternativedon’t come to me with ideal models where we have a Central Bank, that is the fallacy“, shot the economist.

According to OcampoJavier Milei has a reform plan that is based on four fundamental axes: “A reform of the State, a more flexible labor market, an economic opening and a monetary reform, so that we finally have a currency with which we can save and invest.”