The current president of Argentina, Javier Milei, is a notorious supporter of the world’s best-known cryptocurrency, and he backs it up not only with his words, but also with his political ideas. According to Milei, bitcoin could be a revolutionary solution to the country’s decades-old economic problems, especially inflation and lack of trust in the public financial system.
The politician sees freedom in bitcoin, an untouchable, decentralized currency that cannot be influenced by the state. Millei’s continuous support for the cryptocurrency has not yet been reflected in the country thinking about making it an official currency.
Milei has previously vowed to end Argentina’s inflation problem, where inflation has reached 300% in 2023. The politician strategy so far it was built on reducing public spending and unifying it with the dollar, while the crypto currency it praised could be the solution. But, for whom bitcoin is of such importance, the question arises, why not make it the official currency of Argentina?
Argentina is not ready for bitcoin
The president of the South American country is the Argentine peso on live television “excrement” called it. Your dream? Abolish the currency that people no longer trust at all and use the US dollar instead. The value of the peso has collapsed to such an extent that some people believe that instead of saving or investing, residents are fleeing to dollars and cryptocurrencies to survive.
Furthermore, the dollar has an advantage over bitcoin that the country needs now, and that is immediate stability. The dollar is not volatile and does not lose even half of its value in a few months. In contrast, bitcoin is characterized by wild exchange rate fluctuations, and Milei knows that this could push Argentina straight into collapse. And the president of Argentina made it clearand that its short-term priority is to restore the stability of the economy. According to him, the peso is dead and the dollar is currently their lifeboat.
On the other hand, although the president excels in supporting bitcoin, the legislative body, the congress, is not completely on his side. His coalition holds less than 15% of the seats, so passing any major reforms would seem almost impossible. Also, his plans for the dollar are already causing significant disapproval among politicians, so we can imagine what would happen with bitcoin.
Furthermore, Argentina’s regulatory system is not ideal for reform. The country’s central bank has been cracking down on crypto trading for years. Then there is public opinion. Bitcoin may be popular in certain circles, but there are still many people who are not aware of the possibilities of cryptocurrency and even consider it harmful. For most of the population right now, putting food on the table is more important than downloading their first crypto wallet.
In addition, the country’s infrastructure is also an aspect worth considering in this topic. For example, for Bitcoin to function as legal tender, people need smartphones, access to the Internet, and most importantly, education about how cryptocurrency works.
Meanwhile, Milei has consistently taken a stance in favor of bitcoin, and his enthusiasm for cryptocurrencies often comes through in his statements and campaign messages. In the past, he was happy to talk with, for example, Elon Musk or Donald Trump about bitcoin, as well as other prominent actors who are also interested in decentralized financial systems.
All in all, it can be said that although Milei values ​​bitcoin, Argentina is not yet ready to use the world’s best-known cryptocurrency as an official currency.
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