Dollarization in Argentina has been a highly debated topic, but it has not been implemented for various reasons:
Unconstitutionality: The Argentine Constitution establishes that there must be a national currency and a central bank with the power to issue currency. Dollarizing would imply eliminating the national currency, which is unconstitutional.
Economic Impact: Dollarization requires that all pesos in circulation be exchanged for dollars from the Central Bank's reserves. This could have a significant impact on the economy and the financial stability of the country.
Technical and Legal Challenges: Implementing dollarization is a complex process that faces technical and legal challenges. Additionally, the elimination of the Central Bank and the adoption of the dollar as the official currency have been questioned by economists and legal experts.
Past Experiences: In the 1990s, Argentina attempted a form of dollarization with the Cavallo Plan, which ultimately failed and led to an economic crisis. This experience has generated skepticism about the viability of dollarization in the current context.
Political Opposition: Dollarization has faced political and social resistance. Opponents argue that it could limit the country's economic sovereignty and increase dependence on the U.S. economy.