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- Argentina has voted in pro-Bitcoin candidate Javier Milei as President.
- The plans for Bitcoin are not completely unraveled yet but Milei plans to abolish the Central Bank.
In a stunning turn of events, Javier Milei, an unconventional libertarian and ardent supporter of Bitcoin (BTC), has emerged victorious in the Argentine presidential race, securing 56% of the votes against his opponent Sergio Massa’s 44%.
As the news of his triumph spread, Bitcoin experienced a notable surge, rising by almost 3% over the past 24 hours to reach $37,350. Milei’s unorthodox economic vision, which includes eliminating the Central Bank and adopting the US dollar, has captivated both voters and the crypto community.
Javier Milei’s Stance on Bitcoin
Javier Milei has been an outspoken advocate for Bitcoin, criticizing traditional financial institutions and central banks. Earlier this year, he boldly declared, “We have to understand that the Central Bank is a scam.”
When questioned about Bitcoin, Milei articulated that the cryptocurrency represents the return of money to its original creator, the private sector. This sentiment is consistent with the fundamental ideas of decentralization that underpin cryptocurrencies such as Bitcoin.
Milei emphasized the fundamental differences between Bitcoin and traditional paper money. While paper money can be subject to unlimited printing by authorities, Bitcoin has a capped supply, making it resistant to inflationary pressures. He argued that Bitcoin’s fixed supply makes it a viable competitor not only with traditional currencies but also with other cryptocurrencies like Ethereum (ETH).
While Milei has stated his strong support for Bitcoin, he has yet to propose making the crypto legal tender in Argentina. Instead, he is focused on abolishing the country’s Central Bank and calling for the dollarization of the Argentine economy, which has been plagued by surging inflation rates, which reached a whopping 142% in October.
Milei’s proposal to close down the central bank aligns with his belief that it serves no valid purpose. He contends that the introduction of legal tender allows governments to scam people through inflationary tax, a practice he vehemently opposes. By advocating for the closure of the central bank, Milei aims to challenge the status quo and usher in a new era where private money, particularly in the form of Bitcoin, takes precedence.
Milei outlined his strategy in an earlier report, which involves significant spending reductions, streamlining public projects, reducing ministries, eliminating subsidies, and removing capital constraints to facilitate USD transactions. His goal is to achieve a substantial spending reduction equivalent to at least 13% of the gross domestic product before mid-2025.
Implications for Bitcoin
The victory of a Bitcoin supporter in the Argentine presidential race raises intriguing questions about the future of crypto adoption in the region. While Milei has not explicitly advocated for making Bitcoin legal tender, his favorable stance towards decentralized financial systems suggests a potentially favorable environment for the crypto industry.
As political leaders increasingly recognize the shortcomings of traditional financial institutions, cryptocurrencies like Bitcoin may find greater acceptance and integration into national economic strategies.