Pro-Bitcoin President Javier Milei Promotes Free Competition Among Cryptocurrencies in Argentina

Milei Backs Bitcoin to Revitalize Argentina’s Economy

Since taking office last December, President Javier Milei has been focused on revitalizing Argentina’s economy. He views digital currencies, particularly Bitcoin, as potential solutions. Milei highlights Bitcoin’s limited supply and growth model, asserting that it can provide people with greater control over their finances.

HOLA A TODOS…!!!

— Javier Milei (@JMilei) June 19, 2024

His tweet said:

“There will be free competition of currencies so if you want to use Bitcoin there will be no problems… and you can also use other units such as WTI, BTU and the one that is most appropriate for your business… In accounting terms, it is solved by the functional currency method…”

Milei’s statement was in response to Gabor Gurbacs, former Director of Digital Asset Strategy at VanEck, who replied to his introductory tweet with “Bitcoin for all.” Milei confirmed that his administration would promote free competition for currencies, including Bitcoin, as well as units like West Texas Intermediate (WTI) and British Thermal Units (BTU).

Milei’s pro-Bitcoin stance has garnered enthusiastic support from the Bitcoin community. Notable figures, including Gurbacs and El Salvador President Nayib Bukele, have expressed their approval. Additionally, Elon Musk has shown interest in Argentina’s economic progress, further validating Milei’s approach.

Argentina went with a Libertarian.

So can we. @ChaseForLiberty .https://t.co/nqqMsPBTxu https://t.co/TG817tkBtc

— Ian D. (@iDalziel89) June 19, 2024

Challenges in Bitcoin Adoption Amidst Inflation and Tax Issues

From a different perspective, Milei’s statement appears inspired by Nayib Bukele’s administration in El Salvador, which has permitted the free circulation of Bitcoin. However, Argentina faces unique challenges compared to El Salvador, including persistent inflation and tax uncertainties surrounding cryptocurrencies. Additionally, there is a significant preference for stablecoins as a means of payment in Argentina.

Stablecoins are crucial in Argentina.

There’s an entire network of places where you can cash out USDT/USDC.

It’s called the blue market and today we’re going to interview these guys.

Fascinating times.

— Angel | Sphere ⚪ 🍊 (@angeldesolana) January 17, 2024

El Salvador’s experience with Bitcoin provides important insights. A survey by Yale School of Management’s David Argente, Diana Van Patten, and Fernando Alvarez of the University of Chicago revealed that despite various incentives, Bitcoin and the Chivo Wallet app have not achieved widespread adoption among Salvadorans. This indicates that convincing citizens to embrace new payment technologies is a significant challenge.

Globally, central banks are exploring digital currencies to enhance financial inclusion and payment efficiency. Countries like the Bahamas, Jamaica, and Nigeria have already launched their digital currencies. However, Bitcoin stands out due to its decentralized nature, differing fundamentally from central bank digital currencies (CBDCs).

Milei Advocates for Bitcoin in Argentina Amidst Regulatory Backlash

Despite these challenges, Milei remains determined to integrate Bitcoin into the Argentine economy in his own unique way. In December 2023, the Minister of Foreign Affairs, International Trade, and Worship confirmed that the government would allow contracts in Bitcoin, boosting confidence within the crypto community.

However, Milei’s administration has also faced criticism. In the first quarter of 2024, the crypto community, including voices from El Salvador, criticized Milei for yielding to pressure from the Financial Action Task Force (FATF) and enacting stricter regulations for Virtual Asset Service Providers (VASPs).

Argentina’s move toward free currency competition has the potential to significantly impact its economy, especially amidst high inflation and economic uncertainty. The true effects of these measures will become evident in the coming months.

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About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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