Weary of inflation Some are questioning the importance of Bitcoin in Argentina’s recent economic reform after the election of Milei, a Bitcoin advocate.
Javier Milei’s historic win as president of Argentina might cause a dramatic change in the country’s economic situation. The crypto market is riding high on the excitement generated by Milei, who is famous for his strong support of Bitcoin and his vicious attacks on central banks. Instantly after his announcement of victory, the price of Bitcoin surged 2% to $37,302.
Argentina, which is dealing with one of the highest inflation rates in the world, has grown increasingly dissatisfied with conventional banking institutions, and Milei’s electoral victory is a sign of that, according to Reuters. Many voters were moved by his strong opposition to central banks, which he calls a “scam,” and his call for the privatization of financial services using cryptocurrencies such as Bitcoin.
With more than 55% of the vote, Milei has the unambiguous support of the Argentine people, according to the first findings. Sergio Massa, his major opponent, accepted the runoff vote prior to the official results being announced. Notable for her amazing ascension, Milei—a former TV commentator and political outsider who pledged to “break up with the status quo”—has achieved this remarkable success.
The dollarization of Argentina is one of Milei’s loftiest campaign pledges. If carried out, this would be a first for an Argentinean government of this magnitude, essentially handing over monetary policymaking authority to the United States. With this plan, Milei shows that she is serious about sweeping economic changes, which may include a crypto pivot.
With Milei as president, Argentina may enter a new age where the use of digital currencies is central to the country’s economic strategy. The international financial industry is keeping a careful eye on this change because it may show how countries dealing with high inflation and skepticism of conventional banking institutions may use decentralized digital currencies to promote development and stability.
Also Read: India and Egypt Drop the dollar entirely