Argentine leader Javier Milei promotes Bitcoin in currency reform plan

Argentina President Javier Milei has reiterated his support for Bitcoin as a tool to revitalize the national economy.

In a June 19 statement on X, Milei announced that Argentina would allow the competition of various currencies, including digital assets like Bitcoin. He stated:

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

Former VanEck executive Gabor Gurbacs welcomed Milei’s remarks, saying:

“The world has much to learn from the modern economic blueprint in Central and South America, with Argentina and El Salvador leading.”

Meanwhile, Milei’s stance aligns with his advocacy history for the crypto industry. During his campaign, he criticized central banks, calling them a “scam,” and promoted using cryptocurrencies to return financial power to the private sector.

Since taking office, however, Milei has not enacted any official Bitcoin policies. Instead, his administration has been focused on tackling Argentina’s severe financial crisis, emphasizing immediate action and preparing the nation for significant austerity measures.

These measures appear to be paying off, with the country’s monthly inflation rate falling for a fifth straight month in May to under 5%, down from a peak of over 25% in December when Milei took office. However, its annual inflation remains the highest globally at nearly 300%.

Due to this, crypto community members speculate that Milei might follow El Salvador’s example of Bitcoin adoption. Reports suggest Argentinian agencies are collaborating with their El Salvador counterparts to develop a Bitcoin adoption strategy. Additionally, Milei has engaged with various crypto projects, including Worldcoin.

Nonetheless, Argentina is one of the top 15 crypto markets in the world, according to a Chainalysis 2023 index. The report noted that Argentines have increasingly turned to Bitcoin and other digital assets as a hedge against the prevailing economic crisis in the country.

Mentioned in this article