Argentine President Javier Milei has reiterated his support for Bitcoin as a tool to revive the national economy.
In a June 19 statement on X, Milei announced that Argentina would allow competition from various currencies, including digital assets such as Bitcoin. He declared:
“There will be free competition of currencies. If you want to use Bitcoin, there are no problems. You can also use other units such as WTI, BTU, and whatever units are best suited for your business. In accounting terms, it is solved by the functional currency method.”
Former VanEck director Gabor Gurbacs welcomed Milei’s comments: proverb:
“The world can learn a lot from the modern economic blueprint in Central and South America, with Argentina and El Salvador leading the way.”
Meanwhile, Milei’s stance is consistent with his history of advocacy for the crypto industry. During his campaign, he criticized central banks, calling them a “scam” and promoted the use of cryptocurrencies to return financial power to the private sector.
However, since taking office, Milei has not implemented any official Bitcoin policy. Instead, his government focused on tackling Argentina’s severe financial crisis, emphasizing immediate action and preparing the country for significant austerity measures.
These measures appear to be paying off: the country’s monthly inflation fell below 5% for the fifth month in a row in May, compared to a peak of over 25% in December, when Milei took office. However, annual inflation remains the highest worldwide at almost 300%.
As a result, members of the crypto community speculate that Milei could follow El Salvador’s lead in Bitcoin adoption. Reports suggest that Argentinian agencies are working with their counterparts in El Salvador to develop a Bitcoin adoption strategy. In addition, Milei has been involved in various crypto projects, including Worldcoin.
Nevertheless, according to a Chainalysis 2023 index, Argentina is among the top 15 crypto markets in the world. The report notes that Argentines have increasingly turned to Bitcoin and other digital assets as a hedge against the country’s prevailing economic crisis.