Argentina’s President Javier Milei Advocates Bitcoin, Calls For Currency Competition

Argentine President Javier Milei disclosed on June 19 his intent to double down on his pro-crypto stance as he expressed support for an open competitive market for currencies, including Bitcoin.

In a tweet responding to a comment about making “Bitcoin for everyone” a reality, President Milei specifically stated that there’d be open market participation for Bitcoin alongside other known units of transaction in Argentina.

Javier Milei Endorses Bitcoin and Open Currency Market

Milei’s endorsement of Bitcoin comes amid his efforts to rescue Argentina’s struggling economy since assuming office in December 2023.

The president is a long-time crypto advocate who has praised Bitcoin’s scarcity-driven monetary system as empowering for citizens.

His latest comments resonated with the Bitcoin community, with notable figures like former VanEck executive Gabor Gurbacs expressing support. Gurbacs highlighted the novel economic approaches in Central and South America, particularly in Argentina and El Salvador, as a valuable model from which the world can learn.

Argentina is expediting its crypto adoption, engaging in high-level talks with El Salvador to learn from its experience of using Bitcoin as a legal tender.

In the same vein, Maya Parbhoe, a Suriname presidential candidate, promises an El Salvador style of Bitcoin adoption If elected. She said her goal would be to replace the Surinamese dollar with Bitcoin.

Despite Javier Milei’s enthusiasm about Bitcoin, his administration has faced criticism, especially from the crypto community, for regulatory measures believed to be restrictive in the country. Recall that earlier this year, the Argentine government passed a law to tighten regulations on virtual asset service providers – a decision seen as contradictory to Milei’s pro-crypto stance.

Can Bitcoin Serve as a Hedge Against Inflation Amid Growing Crypto Adoption In Argentina?

Argentina’s economic crisis has sparked a surge in demand for Bitcoin as a safe-haven asset as the peso’s value continues to plummet.

Over the past year, the Argentine currency has suffered a staggering decline of 75% against the US dollar, from 0.0049 USD per ARS in March 2023 to a mere 0.0012 USD recently.

In response, Argentines are flocking to Bitcoin at the highest rate in two years to preserve their savings and avoid the peso’s sharp depreciation. Major crypto exchanges like Lemon Cash, Ripio, and Belo have reported astronomical rises in Bitcoin purchasing.

Meanwhile, Argentina is already a major crypto hub, ranking among the top 10 countries globally for crypto adoption. It is the third-largest market for peer-to-peer Bitcoin trading after the U.S. and Russia. Thanks to its low energy costs, the country is also a key center for Bitcoin mining in Latin America.

The adoption of Bitcoin for specific transactions is also growing, as exemplified by the economic reforms announced by Foreign Affairs Minister Diana Mondino in December 2023. These reforms enable the use of cryptocurrencies for certain payments, such as rent payments from tenants to landlords.

Recall that Argentina energy provider sealed a Bitcoin mining deal in May 2024, which will see the firm using associated gas to power 1,200 ASIC mining rigs in Patagonia.

Argentina’s growing crypto industry, combined with President Milei’s pro-crypto policies, shows the country’s path toward further crypto adoption.