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WIll Argentina Follow El Salvador Steps — Pro-Bitcoin Javier Milei Wins

Published August 14, 2023 12:39 PM
Teuta Franjkovic
Published August 14, 2023 12:39 PM
Key Takeaways
  • Bitcoin Advocate Javier Milei wins the primary election in Argentina
  • The youth, fed up with inflation, resound with Milei’s win as it rejects traditional politicians
  • Argentina’s economy and the world at large may change as a result of Milei’s Bitcoin position and Central Bank recommendation

In the open primary elections for the country’s presidency, an Argentine politician Javier Milei who favors Bitcoin and advocates for the abolition of his nation’s central bank is now in the lead .

Libertarian and pro-Bitcoin candidate  Javier Milei is in the lead with approximately 32% of the votes thus far. According to data , he is being trailed by the conservative Together for Change (Juntos por el Cambio) party, which has just under 30% of the vote.

Different Argentina Impossible With Same Old Things

With little more than 28.5% of the vote, the coalition representing the current administration, the left-leaning Union for the Homeland (Unión por la Patria), is in third place.

Milei established and is the leader of the alliance Liberty Advances (La Libertad Avanza), whose ideologies range from libertarian to far-right.

In his dramatic post-election speech, Milei said : “We are the true opposition. A different Argentina is impossible with the same old things that have always failed.”

Milei, who describes himself as an anarcho-capitalist, has advocated  for the abolition of Argentina’s central bank and described the sale of human organs as “just another market.”

According to him, Bitcoin is a response to “central bank scammers” and fiat money enables governments to defraud Argentineans through inflation.

For him, Bitcoin represents liberty and financial freedom. In his estimation of Bitcoin’s potential, “Bitcoin represents the return of money to its original creator: the private sector.”

He said :

“Bitcoin is the natural reaction against Central Bank scammers, and to make money private again.”

Central Bank Banning Digital Wallets

With an annual inflation rate  of 116%, the worst in over three decades, and a crisis in the cost of living, such rhetoric has found favor with Argentina’s voters.

Milei labeled his previous promise to “blow it up ,” which he made last year in an effort to defraud “good people” through inflationary taxation, a hoax.

Although the Central Bank of the nation recently banned digital wallets , little has changed in the booming crypto industry, which, according to Chainalysis , places Argentina’s use of cryptocurrencies at 13th globally.

The latest judgment states that digital wallets in Argentina are not permitted to “carry out or facilitate operations with digital assets, including crypto assets.” The “mitigating the risks” to the general public and the financial system was the central bank’s justification for its choice.

The country’s top digital wallet, Mercado Pago, is projected to be most impacted by the rule. A similar product had already been launched in Brazil by Mercado Libre’s digital bank and rival Nubank, both of which swiftly attracted one million subscribers.

The general presidential election in Argentina will take place on October 22. A run-off election will be place in November if no candidate receives at least 45% of the vote.

Ponzi Schemes, Milei, and the Central Bank

Milei was brought up in court for allegedly endorsing Coinx , an Argentinean Ponzi scam that is accused of taking at least $800,000 in pesos.

Milei then insisted that the business operated just like a bank and denied  any misconduct.

Although some  in the cryptocurrency community are hoping Milei will advocate for a Bitcoin standard akin to El Salvador or other such pro-crypto policies, the eccentric presidential candidate might not be that willing.

For instance, he declared  his plans to “dollarize” the Argentine economy just last month.

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