In a landmark victory, pro-Bitcoin advocate Javier Milei has emerged as the President-elect of Argentina, securing over 55% of the votes in the presidential run-off election held on November 19th. This significant win, with a lead of over 3 million votes, marks a pivotal moment in Argentina’s political and economic landscape.
The Decisive Presidential Run-Off
Javier Milei’s triumph was acknowledged by his primary opponent, Sergio Massa, the country’s Minister of Economy, who conceded defeat after 90% of the votes were counted. Milei’s inauguration is set for December 10th. The election centered around critical issues, including the nation’s severe inflation crisis, which has seen the Argentine Peso suffer a 140% increase in annual inflation over the past year.
Argentina’s Economic Turmoil
Argentina faces daunting economic challenges, with nearly 40% of its population living in poverty and inflation rates soaring around 150%. The economy is on the brink of contraction, and the government is cut off from international capital markets. The central bank’s depleted reserves have heightened fears of a return to hyperinflation, a scenario Argentina hasn’t faced in nearly three decades.
Milei’s Stance on Argentina’s Central Bank and Cryptocurrency
Milei has been a vocal critic of Argentina’s central bank, labeling it a scam and a tool for politicians to impose inflationary taxes. His views starkly contrast with those of Massa, who proposed launching a central bank digital currency (CBDC) to combat inflation. Massa’s approach included a global digital currency launch for Argentina, coupled with a law to facilitate the free use of overseas funds without additional taxes.
Bitcoin’s Response to Milei’s Victory
The announcement of Milei’s victory positively impacted Bitcoin, which saw a nearly 3% increase in value, reaching $37,350. Milei’s pro-Bitcoin stance, advocating for the return of money creation to the private sector, has been a key element of his economic perspective.