The libertarian economist prevailed over his rival, Sergio Massa. Milei will be the next president of Argentina.
- Stablecoins are the only existing dollar quote during Saturdays, Sundays, and holidays.
- Milei has promised to institute a regime of free competition of currencies.
The price of cryptocurrency stablecoins (or crypto dollar) skyrocketed in Argentina today. Javier Milei, the “La Libertad Avanza” candidate, won the electoral race and will be the next president. His rival, Sergio Massa, publicly acknowledged the defeat and said he had communicated with Milei to congratulate him and coordinate the governmental transition.
The following chart, provided by TradingView, shows the USDT price in Argentine pesos on the Binance exchange.
The price of bitcoin (BTC) jumped at the same time that the victory of Milei (who on numerous occasions has declared himself in favor of the digital currency) was known:
Musk and others give their opinion on Javier Milei’s victory
Several personalities have spoken out on the victory of the libertarian economist. Entrepreneur Elon Musk, the founder of Tesla, among other companies, predicts: “Prosperity is ahead for Argentina.”
Prosperity is ahead for Argentina
— Elon Musk (@elonmusk) November 19, 2023
Locally, Marcos Galperín, founder and CEO of MercadoLibre, expressed his enthusiasm on his X account (formerly Twitter):
Libres. pic.twitter.com/lbnjOIAqUb
— Marcos Galperin (@marcos_galperin) November 19, 2023
Kirchnerist lawyer Carlos Maslatón, former treasurer of Xapo and who was one of Sergio Massa’s advisors in the last presidential debate, wrote (before Massa’s speech):
It looks 60-40. The best for Milei. Data from all over the country. For me, irreversible. It was a great year, a great campaign by all. The central issue now is President Milei’s economic program. Exciting times ahead in a very bullish Argentine economy. Carlos Maslatón, former treasurer of Xapo.
Carlos Maslatón, former treasurer of Xapo.
Free Bitcoin competition, one of Milei’s proposals
The electoral platform of La Libertad Avanza includes establishing a system of free currency competition (popularly known as “dollarization” since this is the favorite currency of Argentines for savings). This change would include the elimination of the Central Bank (BCRA). Milei considers Central Banks a scam. He even said that bitcoin (BTC) is the natural reaction to the actions of these entities. On the other hand, Diana Mondino, who may serve as Minister of Foreign Affairs during Milei’s government, said, “Argentina will become a bitcoin paradise.”
Argentina & Inflation
Argentina has faced a persistent problem with high inflation rates for several decades. The most recent inflation spike began in 2015, with speeds reaching as high as 53.8% in 2019. Inflation has caused a lot of instability in the country’s economy, making it difficult for businesses to plan for the future and for individuals to maintain their purchasing power.
There are several reasons why inflation has been such a persistent problem in Argentina. One major issue is the country’s high levels of public debt. The government has been borrowing heavily for years to finance its spending, leading to a situation where the country’s debt has become unsustainable, leading to a lack of confidence in the country’s currency, making it difficult to control inflation. Additionally, people accused the government of manipulating official statistics to make inflation appear lower than it is. Such actions led to a lack of trust in the government and further eroded confidence in the country’s currency.
As a result of the high inflation rates, many Argentinians have turned to cryptocurrencies and stablecoins to protect their savings. Stablecoins, in particular, have become popular because they are pegged to the US dollar or other stable currencies, providing a hedge against inflation. Additionally, cryptocurrencies like Bitcoin have also gained popularity as a way to protect against inflation and currency devaluation.
Overall, inflation remains a significant issue in Argentina, causing economic instability and eroding trust in the government and the country’s currency. While the government has taken steps to address the problem, including implementing various austerity measures, we’ll have to wait and see whether these measures will successfully control inflation over the long term.