In a bid to steer the nation out of its economic crisis, pro-Bitcoin (CRYPTO: BTC) leader Javier Milei took the helm as Argentina’s president on Sunday.
What Happened: Associated Press reports indicate that Milei’s inaugural address in Buenos Aires was a frank delineation of Argentina’s economic peril, preparing citizens for significant austerity measures.
Stressing the severity of the situation, Milei stated, “Our country demands action, and immediate action.” The new president expressed regret over tough decisions that lie ahead, attributing these to the nation’s political class pushing Argentina to the edge of a massive crisis.
Argentina, the second-largest economy in South America, is grappling with a 143% annual inflation rate. Four in ten Argentines live in poverty. The country is also battling a fiscal deficit, a $43 billion trade deficit, and owes $45 billion to the International Monetary Fund.
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Milei has assured that the austerity measures will primarily impact the state and not the private sector, marking a first step towards recovery.
“We know that in the short term the situation will worsen, but soon we will see the fruits of our effort, having created the base for solid and sustainable growth,” he said.
Why It Matters: Milei, a staunch supporter of Bitcoin, has been openly critical of Argentina’s central bank, labeling it a scam and a “mechanism used by politicians to deceive the public through inflationary tax.” His election victory had a positive impact on the cryptocurrency market, with Bitcoin seeing a significant increase. It also fueled a rally in Argentine ADRs trading on major U.S. stock exchanges.
His radical campaign pledges, such as abolishing the Central Bank and substituting the peso with the U.S. dollar, appear to be paused as he named a former Central Bank president Luis Caputo as his economy minister.
Earlier in May, the pro-Bitcoin leader made headlines when he smashed a model of Argentina’s Central Bank on live TV, symbolizing his critique of the institution.
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