Argentina surprisingly elected libertarian candidate Javier Milei as its new president. He chose a leader with radical economic views, many say, to combat the country’s triple-digit inflation, looming recession and rising poverty. This development also increased the price of Bitcoin. Because Milei is seen as a loyal supporter of BTC. Here are the details…
Bitcoin supporter candidate becomes president
Milei, a staunch supporter of Bitcoin, expressed positive sentiments about the leading cryptocurrency, emphasizing that Bitcoin “represents the return of money to its original owner, the private sector.” However, controversy surrounding Milei continues as it was revealed that Milei’s $13 million short position was liquidated during the post-election rally.
The president-elect also faced criticism for promoting crypto pyramid scheme CoinX on his popular Instagram account and presenting it as a solution for Argentines to escape inflation. Milei has previously supported other dubious crypto asset platforms. Unlike Nayib Bukele, El Salvador’s Bitcoin-loving ruler, Milei does not intend to make Bitcoin the official currency. Instead, it aims to replace the Argentine peso with the US dollar, a move that would increase the influence of the Federal Reserve and the Bank for International Settlements.
The country is experiencing the worst crisis in the last 20 years
The country’s Economy Minister Sergio Massa conceded defeat, citing the country’s worst economic crisis in two decades during his term in office. Milei’s victory is attributed to promises of shock therapy for the economy, including plans to close the central bank, eliminate the peso from circulation and impose spending cuts. These proposed reforms have resonated with voters disappointed with the poor performance of the economy, but some fear the potential for austerity.
Bitcoin price jumped
In response to Milei’s election, Bitcoin jumped 2% and surpassed the $37,200 level. With nearly 99% of the votes counted, Milei received over 55% of the vote, giving her a significant lead of almost 3 million votes. Crypto enthusiasts, especially those who advocate Bitcoin as an inflation hedge, are celebrating Milei’s victory. The ongoing inflation crisis in Argentina, where the annual inflation rate exceeds 140%, has led many to support Bitcoin as a solution.
Milei’s open criticism of the country’s central bank as a scam and a means for politicians to deceive the public with inflationary taxes aligns with his view of Bitcoin as a move to return money to the private sector. However, Milei has shown no inclination to designate Bitcoin as legal tender, making Argentina the second Latin American country after El Salvador to consider such a move. As Javier Milei prepares to take office on December 10, the crypto community is closely monitoring potential shifts in Argentina’s economic policies and their impact on the cryptocurrency world.
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