November 22, 2024
Milei presidential victory fuels optimism in Argentina’s Bitcoin community

After a long and dramatic presidential campaign, liberal candidate Javier Milei won Argentina’s presidential election on November 19.

Milei’s promise to abolish the country’s central bank, along with a series of other radical policy changes, captured the attention and imagination of the crypto community.

On Sunday, November 19, 99% of the votes were counted and Milley was declared the winner. The flamboyant politician won the support of 55% of voters, 3 million more votes than rival Sergio Massa.

Fernando Nikolić, an Argentinian Bitcoin (BTC) advocate and founder of media analytics firm Bitcoin Perception, told Cointelegraph that Milai “made a comment about Bitcoin when asked about it in an interview. positive comments,” but he also noted that this enthusiasm should be tempered by the fact that “passing any laws that would be considered ‘Bitcoin-friendly’ is not part of his official plan.”

Nikolić added that as an advocate of free-market currencies, Milei is also unlikely to pass any laws that would harm Bitcoin.

Iván Paz, CEO of cryptocurrency trading platform Trading Different, took a positive view of the election results. Paz said Milley’s free-market policy agenda could revive Argentina’s flagging economy.

“Argentina will enter a cycle of accelerated economic recovery, driven by the confidence of local and foreign investors,” Paz told Cointelegraph. “The reduction in tax burdens and legal protections will once again make Argentina an attractive country in the long term.”

Many Argentines now look forward to sweeping reforms. Camilo Jorajuria de León, vice president of the Argentine Bitcoin Association, reminded the incoming president of his election promises:

“Bitcoin is for monetary freedom, and that’s one of the president-elect’s proposals. As Bitcoin supporters, we hope he delivers on his promise.”

Mire’s first priority after taking office will be to curb the country’s runaway inflation, which hit 143% in October.For comparison, U.S. inflation reach the peak It was 9.1% in June 2022 and currently stands at 3.2%. With the Argentine peso’s spending power plummeting, it’s no surprise that Argentines voted for candidates who proposed cutting nearly all public spending and big government.

Argentina’s new politics

Milei promises to reinvent and reinvigorate the Argentine economy in new ways. The beliefs supporting a libertarian anarcho-capitalist policy agenda are likely to resonate with many in the crypto community.

His key policies include “blowing up” the central bank to stop money printing, abandoning the peso in favor of the dollar, and abolishing nearly all forms of welfare in the country.

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The president-elect confirmed his plans for the future of government in a dramatic video circulating on social media.

“Ministry of Sports and Tourism – out!” Milley said. “The Ministry of Culture – out! The Ministry of Environment and Sustainable Development – out!”

In the film, Millay punctuates each cut by ripping department names from whiteboards and tossing them aside.

Bitcoin Miles

While President-elect Milei may embody a maverick spirit that appeals to the ideological leanings of Bitcoin enthusiasts and crypto circles, that is not the same thing as actively supporting it.

The president-elect has previously outlined why Bitcoin is useful as a monetary instrument that is not controlled by the state.in video release Milei took his stance on Reddit’s r/bitcoin 11 months ago.

“What’s the point of this? The key thing is that the first thing we need to understand is that the central bank is a scam.” explain Milais. “This is a mechanism for politicians to cheat good people with inflation taxes. Bitcoin represents the return of money to its original creator, the private sector.” Milais added:

“Bitcoin is a natural response to central bank scammers and an attempt to make money private again.”

The new president may praise Bitcoin as a financial instrument, but that’s not what Bitcoin advocates hope. There are undoubtedly those who want Argentina to adopt Bitcoin as legal tender.

What Bitcoin Enthusiasts Think of Melei

Cointelegraph asked Nikolić Milei what his election would mean for cryptocurrency advocates.

“I don’t think this will completely change the current situation,” Nikolic said. “Argentines have been accepting Bitcoin and other cryptocurrencies for years. My hope is that in the long run, Argentina becomes more conducive to entrepreneurs, prosperity and freedom, helping to repair the major cracks in the country’s infrastructure.”

Nikolić added, “If 50% of citizens live below the poverty line and lack understanding of the concept of savings, widespread adoption of Bitcoin across the country may be slow.”

This is not something that can be changed overnight. Mire’s policies and broader economic policy will take time to adapt.

As for the million dollar question: “Will Bitcoin become legal tender in Argentina?” Nikolic believes that legal tender certification may not be as important as it seems.

“I think adoption is more powerful when it emerges organically from the grassroots rather than being imposed from the top down. I hope Bitcoin adoption in Argentina will continue to flourish, especially as the country continues to progress under Milei’s leadership. , people’s living conditions began to improve.”

argentine economy

Soaring inflation is not the only problem facing the Milley government. When the president-elect takes office on December 10, he will lead a country facing a host of economic challenges.

Chief among them is that Argentina is the largest borrower from the International Monetary Fund (IMF). The country owes the International Monetary Fund $31 billion.

The agency gave the president a nod and a wink as early as Monday. International Monetary Fund Managing Director Kristalina Georgieva is one of them. Congratulations Mire talks about his electoral success.

“We look forward to working closely with him,” she added.

Economist Nicolás Litvinoff believes that Mire’s first priority is to get rid of the IMF monkey.

“I think the most important thing is to regain the autonomy of monetary policy. On the one hand, to accumulate reserves at the central bank that are now almost non-existent,” Litvinov said, before adding that Milley must “restore the purchasing power of wages , to revive consumption and the economy (…) but for that you need the IMF to get out of the way.”

Who is Javier Millay?

Millais first came to prominence as an economist, author and political commentator.

Western media have compared Milley to former US President Trump, but the similarities drawn are often superficial. Both were populists from outside the political mainstream. Both were elected on a wave of public discontent. Both men have unconventional hair.

Such comparisons can confuse as well as enlighten.

Millay was born in 1970 in Buenos Aires, the capital of Argentina. He was raised Catholic, which influences his political views to this day. Although Milley was mostly a social liberal, he opposed abortion and euthanasia. He supports freedom of choice for drugs, guns, prostitution and same-sex marriage.

As a young man, Millay sang in a Rolling Stones cover band. His speaking style owes more to the world of rock than to politics.

During the campaign, performer Mire carried a chainsaw to rallies, often revving it up and holding it triumphantly above his head.

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To supporters, Mire’s chainsaw symbolizes the deep cuts his government will take to curb government spending and control inflation. To opponents, chainsaws represent something else: a dangerous and arrogant man wielding a chainsaw in public.

They called him “El loco” – the madman – or the lunatic. That’s a piece of cake. Milley’s message and style resonated with voters tired of the status quo, no matter how crazy he seemed to skeptics.

As for his rival Sergio Massa, the chainsaw took on a final, more ominous meaning when Millais cut him down in a very public chainsaw massacre this weekend. Now that Mire has the keys to the presidential office, he must begin cleaning up Argentina’s broken systems.