President of Argentina Javier Milei has reaffirmed his backing for Bitcoin to boost the country’s economy.
Argentina is among the world’s top 15 cryptocurrency marketplaces.
Milei declared on June 19 on X that Argentina would permit the competition of many currencies, including virtual currencies like Bitcoin. He said:
“There will be free competition of currencies. If you want to use Bitcoin, there will be no problems. You can also use other units such as WTI, BTU, and the most appropriate for your business. In accounting terms, it is solved by the functional currency method.”
Gabor Gurbacs, a former executive at VanEck, praised Milei’s comments, saying:
“The world has much to learn from the modern economic blueprint in Central and South America, with Argentina and El Salvador leading.”
Milei’s position, meanwhile, is consistent with his past support of the cryptocurrency sector. He called central banks a “scam” and attacked them during his campaign, advocating using cryptocurrencies to give the private sector back control over the financial system.
However, Milei has yet to implement formal Bitcoin regulations since gaining office. Instead, his administration has prioritized addressing Argentina’s dire financial crisis, stressing the need for quick action and preparing the country for considerable austerity measures.
The country’s monthly inflation rate dropped for a fifth consecutive month in May to less than 5%, from a peak of almost 25% in December when Milei assumed office, suggesting that these actions are having an effect. With an annual inflation rate of around 300 percent, it is still the highest in the world.
Because of this, people in the cryptocurrency industry think Milei may adopt Bitcoin similarly to El Salvador. According to reports, Argentinean agencies are working with their colleagues in El Salvador to create a plan for adopting Bitcoin. Milei has also participated in several cryptocurrency projects, such as Worldcoin.
Nevertheless, a Chainalysis 2023 assessment places Argentina globally among the top 15 cryptocurrency markets. According to the survey, Argentines increasingly use Bitcoin and other digital assets as a buffer against the nation’s ongoing economic problems.