On November 20, 2023, cryptocurrency enthusiast Javier Milei stepped in as President of Argentina. The crypto community believes that he can support the spread of digital assets around the world. Meanwhile, neighboring authorities from El Salvador are sending a delegation to help Argentina get on the crypto rail. Here is what you should know about Milei's victory implications for the crypto industry.
4 facts you need to know about Argentina's new head
1. Javier Milei holds a degree in economics. He mastered his profession at the University of Torcuato di Tella and the Institute of Economic and Social Development of Argentina.
The future president actually worked as an economist at the private pension company Maxima AFJP, the financial company Estudio Broda, and the International Center for the Settlement of Investment Disputes (ICSID). Milei also managed to work as an economics teacher at the University of Buenos Aires and even wrote the book “The Libertarian Way.”
2. The new president proposes to eliminate the central bank and take a shift towards dollarisation. This way, he wants to reform Argentina's financial system.
Milei started his political career by joining the Libertarian Party of Argentina in 2019. He gained prominence as a politician by criticising the current authorities, whose decisions led the country to hyperinflation. Over the past 5 years, the Argentine peso has declined by nearly 1600% against the US dollar.
3. He is an extraordinary politician. Emotional speeches and loud promises make him stuck with the nickname “mini-Trump.”
Milei also has a non-standard work approach: he prefers to discuss job-related issues with his dogs, referred to as his “four-legged children.” The way the politician earns attention is unusual as well; you can find him swinging by the streets of Argentina with a chainsaw in his hand.
4. Javier Milei is a cryptocurrency advocate. He believes that digital assets are a key to empower people with control over their money.
“Bitcoin is a natural reaction to the fraud of central banks”, Milei says.
Such positive statements have led the new president of Argentina to join the camp of crypto-friendly politicians. Since Milei is determined to reform the country, many expect him to legalise cryptocurrencies.
Does Javier Milei really want Argentina to copycat El Salvador's path
Milei is not the first president to believe cryptocurrency may be a solution to his country’s financial market issues. El Salvadorian Nayib Bukele was the first country's head to legalise Bitcoin ever.
In September 2021, the politician made BTC a national currency alongside the US dollar. But the reality seems not to fit his expectations. Amid Bitcoin legalisation, the country was drawn into protests, while 86% of businesses refuted to accept crypto. The statistics are confirmed by travellers, who state that the majority of El Salvador citizens still prefer fiat.
Alongside legalisation, El Salvador started to mine cryptocurrency using green energy. In November 2022, local authorities announced that the Central Bank must now buy one Bitcoin every day from the national Treasury reserves in order to form an inflation-stable stash.
El Salvador currently has 2,381 BTC. Among other countries, only Ukraine (46,351), China (194,000), and the USA (207,189) have more Bitcoins. However, in general, this is less than many public companies' stashes: MicroStrategy has 158,400 bitcoins, Tesla has 10,725, and HIVE Digital Technologies, which ranks 10th among such firms, has 3,350 coins.
Even after a not-really-successful Bitcoin adoption attempt, Bukele is not planning to give up and is ready to share his experience with his Argentine counterpart.
Milei never responded to the El Salvador delegation meet-up plan. Furthemore, he has not made any loud statements about crypto adoption in Argentina yet.
Is it a good time to move to Argentina and buy bitcoins?
Milei’s favourable stance toward cryptocurrency and El Salvador’s interest in extending advice to Argentina cannot be counted as preparations to make Bitcoin the national currency. The new president has not yet made any important crypto-related statements, so it is too early to predict that Argentina will become the world's crypto capital. But one more powerful cryptocurrency advocate as a country leader is definitely positive news that can support market growth.
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This article is not an investment recommendation. The financial transactions mentioned in the article are not a guide to action. Itez is not responsible for possible risks. The user should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.