Bitcoin and Politics: A Closer Look at Argentina's Presidential Candidate Javier Milei

Bitcoin and Politics: A Closer Look at Argentina’s Presidential Candidate Javier Milei

Updated: 14 August 2023

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Javier Milei, a known proponent of Bitcoin and libertarian economics, has recently earned the top spot in Argentina’s primary, following an unexpected victory. His coalition, La Libertad Avanza, managed to secure over 30% of the votes, edging out the center-right coalition, Juntos Por El Cambio, by a narrow margin of just under 2%.

However, not everything about Milei’s relationship with cryptocurrency is positive.

Milei’s Views on Cryptocurrency

The self-identified libertarian economist, who has made numerous talk show appearances during his presidential campaign, has passionately argued for the benefits of Bitcoin and other cryptocurrencies. He sees Bitcoin, along with other digital currencies like Ethereum, as a “return of money to its original creator: the private sector.” Emphasizing Bitcoin’s finite supply, Milei regards it as a more secure alternative to traditional mediums like gold or silver.

Support from the Crypto Community

Milei’s pro-Bitcoin stance has earned him the admiration of a significant segment of the population, including the so-called “protest voters,” of whom many are advocates of cryptocurrency. Adam Dubove, an Argentine Bitcoin enthusiast, stated that he voted for the first time in eight years “because of Milei.” His decision was less about Bitcoin itself and more about a new mindset and a candidate who would “stir up the hen.”

Controversial Ties and Views on Banking

However, Milei’s connection to the crypto world hasn’t been without controversy. He was sued for allegedly promoting a Ponzi scheme in Argentina called Coinx, accused of stealing around $800,000 in Argentine pesos. Milei strongly denied any misconduct, comparing the company’s actions to those of a typical bank.

A prominent critic of Argentina’s central bank, Milei has often attacked it for “cheating good people” through inflationary tax. He even went so far as to claim he would “blow it up,” calling it a scam. With inflation rates in Argentina reaching 135% this year, his criticism has resonated with many.

The Current Crypto Climate and Future Prospects

The country’s crypto scene continues to grow despite the Central Bank’s recent ban on digital wallets. Argentina ranks 13th in crypto adoption worldwide, according to Chainalysis.

Yet, Argentina is not a place one easily thinks of when talking about crypto. Recently, the event that brought it into attention was the death of a well-known influencer, Fernando Pérez Algaba, in Buenos Aires. It had been revealed that the late influencer had faced financial difficulties, and his company had accumulated significant debts, including with the Argentine tax agency, while a note found on his phone revealed his losses from crypto investments. This is a sober reminder of the safety risks that are being faced in this Latin American nation, despite the progress that people like Milei are attempting to make.

Though some in the crypto community are optimistic that Milei may advocate for pro-crypto policies, such as an El Salvador-style Bitcoin standard, his intentions might not align with these hopes. He has, for example, expressed his desire to “dollarize” the Argentine economy last month.

Javier Milei’s victory as Argentina’s latest presidential candidate illustrates the increasing influence of Bitcoin within political circles. While his commitment to crypto has generated support, especially among protest voters, controversies and uncertainties cloud his stance. What this will mean for Argentina’s political landscape and its burgeoning crypto scene remains to be seen. His approach to Bitcoin and his broader economic policies will be closely watched as the country grapples with rampant inflation and looks for new economic solutions.