Pro-Bitcoin Candidate Wins Argentine Election

Reading Time: 2 minutes
  • Javier Milei, a far-right libertarian, has secured victory in Argentina’s presidential election
  • His victory raises hopes of greater adoption among Bitcoin enthusiasts due to his previous favorable remarks about the cryptocurrency.
  • While Milei’s plans remain unclear, his disdain for the central bank could play a crucial role in any potential shift towards Bitcoin

Javier Milei, a fiery far-right libertarian known for his commitment to combatting inflation, has won the Argentine presidential election. Javier Milei won the country’s presidential run-off election yesterday, beating out his opponent Sergio Massa, and Bitcoiners are hoping that his previously positive comments on the cryptocurrency translate into action. Milei’s victory propels the nation into an uncertain and possibly tumultuous era, with little known of his plans to tackle the country’s hyperinflation, but his hatred of the country’s central bank could be pivotal in any greater adoption.

Bitcoin Returns Money to “Original Creator”

In his celebratory speech, Milei promised “drastic changes” to tackle Argentina’s “tragic reality” of rampant inflation and widespread poverty. There is a possibility that these drastic changes could involve Bitcoin, which he has previously called “the return of money to its original creator, the private sector,” but the lack of implicit backing of the digital currency means that we’re not looking at another El Salvador just yet.

Milei has, however, been scathing over the actions of the country’s central bank, referring to it as a scam and a “mechanism by which politicians cheat the good people with inflationary tax.” During his campaign, Milei vowed to abolish the central bank and dollarise the economy in order to overcome a financial calamity that has left 40% of Argentina’s 45 million citizens in poverty and pushed inflation to more than 140%.

IMF Deal Could Scupper Adoption

Only time will tell if Bitcoin will play any part in his plans, but his hands may be tied by the actions of his predecessors; last year the Argentine Senate last night approved a debt deal of $45 billion with the International Monetary Fund which contains a provision that the country “discourage the use of crypto-currencies”.