Incoming Argentine President Javier Milei once again showed his determination to shut down the Argentine Central Bank (BCRA) on X platform, stating that this is a non-negotiable matter. He also mentioned that he is currently discussing Argentina’s fiscal adjustment plan and monetary policy with the International Monetary Fund (IMF) in search of a solution to cure the Argentine economy.
Background:
Bitcoin fanatic President Milei: Argentine Central Bank shutdown is non-negotiable! Local exchange user count surges by 180% in a single month.
Table of Contents:
Argentina can become a “Bitcoin paradise”
Bitcoin rescues people trapped in severe inflation
Will Argentina be the next El Salvador?
The “Bitcoin fanatic President” Javier Milei, who pledged to close the central bank, officially took office on December 10. Immediately after taking office, Milei implemented radical economic policies to address the fiscal deficit and control the country’s nearly 150% annual inflation rate. These policies included devaluing the national currency, the peso, by more than half, and announcing a series of austerity measures to reduce government spending, gaining recognition from the International Monetary Fund (IMF).
As a government friendly to cryptocurrencies, the Milei administration announced its first cryptocurrency policy on the 22nd. Diana Modino, the newly appointed Minister of Foreign Affairs and International Trade of Argentina, announced on X platform that Argentina has approved and confirmed that Bitcoin and other cryptocurrencies can be used as currencies for commercial contracts.
According to Cointelegraph, the new Argentine government passed the “Argentina Economic Reconstruction Foundation” bill on December 20, which did not specifically mention cryptocurrencies but included provisions allowing debtors to choose currencies or goods other than the Argentine peso for payment, granting individuals the freedom to choose the type of currency.
It is worth mentioning that Modino is one of the most outspoken Bitcoin supporters in the Argentine cabinet. According to DL News, Modino stated in August that “Argentina can become a Bitcoin paradise.” She also announced at a Bitcoin conference in November that the Argentine government supports monetary freedom and will allow contracts to be signed using Bitcoin.
Now, Argentina has officially approved the use of Bitcoin in contracts, and it is expected that this will be the first step towards a larger adoption of cryptocurrencies in the country.
In fact, Argentina has been suffering from severe inflation for many years. The November CPI report showed that the country’s cumulative inflation rate for the year reached 148.2%, with a monthly increase of 12.8%, causing immense hardship for the Argentine people, who have turned to using cryptocurrencies such as the US dollar and Bitcoin on a large scale.
According to a report published by Chainalysis in October this year, Argentina ranks 15th globally in terms of cryptocurrency adoption and leads Latin America in terms of cryptocurrency trading volume. The estimated trading volume in the country during the 12-month period ending on July 1 reached 85.4 billion US dollars.
To solve the problem of high inflation, Javier Milei, known as the “Argentine Trump,” vowed during his campaign to take extreme measures to save the economy, including abandoning the peso and adopting the US dollar as the official currency. After his election, he stated that he is currently discussing Argentina’s fiscal adjustment plan and monetary policy with the International Monetary Fund (IMF).
The crypto community is also speculating whether Argentina has the potential to become the next El Salvador by legislating Bitcoin as its national currency. However, Milei has not publicly discussed his support for Bitcoin or other cryptocurrencies or his willingness to adopt them as legal tender since taking office. It is also worth noting that the loan agreement between Argentina and the IMF includes a clause that restricts the use of cryptocurrencies, which may be one of the reasons why the Milei government has not vigorously implemented cryptocurrency support policies.
Related Reports:
“Bitcoin fanatic” becomes President of Argentina, who once vowed to blow up the central bank.
Will “embrace Bitcoin” advocate Milei be the next President of Argentina, like El Salvador?
Ark Investment: Argentina’s “Bitcoin adoption rate” surpasses that of El Salvador, plagued by severe inflation.
45 million people exposed to Bitcoin, will Argentina become the next El Salvador?
Tags:
Javier Milei
Cryptocurrency
Contracts
Bitcoin
Inflation
Argentina