New Argentine President is pro-Bitcoin and anti-Central banks, crypto rises thanks to election result
Last Updated on 21 November 2023 by CryptoTips.eu
The new Argentine president Javier Milei will first and foremost be labeled by the traditional media as a far-right and populist figure. Later it will be admitted that after years of record inflation, Argentines had no choice but to opt for innovation and a new economic model.
It is not known what this economic innovation will exactly look like, but it is clear that for the first time a pro-Bitcoin candidate has won the elections of a medium-sized country.
“Bitcoin is hope for Argentina. Congratulations Javier Milei,” MicroStrategy founder Michael Saylor said when the victory of Milei became clear.
After the weekend was relatively quiet for Bitcoin, the largest digital currency started to climb some three percent since Sunday night, after news of Milei’s election filtered through. Yesterday evening it touched $37,800 before gently retreating.
The election results reflect a major political shift in Argentina, which is heavily influenced by Milei’s strong opposition to the central bank, which he calls a “fraudulent institution” and a tool for politicians to impose inflation taxes on the population.
Javier Milei wins the Elections in Argentina.— Michaël van de Poppe (@CryptoMichNL) November 20, 2023
Heavily favoured towards #Bitcoin, keen to see whether Argentina is going to integrate Bitcoin into their system.
His ideas resonated with Argentinians, who have been plagued for years by a terrifying inflation crisis, with the Argentine peso experiencing a staggering 140% annualized inflation last year.
Milei’s victory is not only a political statement, but also a potential game-changer for Bitcoin and crypto.
The newly elected president sees Bitcoin as a key to revive the economy and is calling for monetary control to return to the private sector. Mind you, at the time of writing, Milei has not yet proposed making Bitcoin legal tender in Argentina, even though City AM, a major financial newspaper in Britain, said he would.
His original plan is to introduce the dollar and abolish the central bank. It remains to be seen whether this will succeed. If this fails, as many expect, crypto will probably emerge as a fallback solution.