Milei's anti-central bank stance suggests that he may not believe that promoting crypto assets would harm fiscal policy.

Source: Beincrypto

Translation: Blockchain Knight

Yesterday, Argentina swore in liberal capitalist Javier Milei as the new president.

Milei, who comes from the Austrian School of Economics, has openly expressed support for BTC, believing that BTC is a way to solve Argentina's long-standing economic mismanagement issues. Additionally, Argentina's inflation rate this year may exceed 200%.

Milei is now facing fiscal and social challenges, as many young citizens have left Argentina. He plans to cut government spending by 5% and has signed a presidential decree to halve the number of government departments.

Part of the reason for inflation is the devaluation of the Argentine peso, leading to a large amount of paper money in circulation in Argentina. After the ninth sovereign default left Argentina unable to borrow in capital markets, the country fired up the printing press.

Now, JPMorgan predicts that the country's inflation rate may soon be on par with Zimbabwe and Sudan. Goldman Sachs economist Alberto Ramos said that if Milei could accomplish an unlikely political shift, Argentina could become a successful emerging market.

"He may want to do the right thing, but he may not be able to. You are dealing with nitroglycerin. It can ignite overnight. Once the economic adjustment begins, it may be out of control," Ramos said.

According to Guido Moscoso, a public opinion pollster at Opinaia, Argentina has only undergone two free-market reforms in the past 50 years.

In order to control hyperinflation and possibly adopt BTC, Milei must change the economy. But to do this and maintain his reputation, he needs to be "smart and pragmatic."

However, like other politicians promoting BTC in the United States and elsewhere, it is difficult to say how successful Milei will be.

Miami Mayor Francis Suarez accepted a salary in BTC, causing a stir among news agencies, but he withdrew from the 2024 presidential candidate race, shattering hopes of White House support for him.

Another official in Florida, Governor Ron DeSantis, passed a bill against central bank digital currencies and expressed support for BTC, but he is likely to lose to former President Donald Trump.

BTC-opposing candidate Robert F. Kennedy recently decided to run as an independent candidate, which may lower his chances of winning.

During his presidential campaign, Milei promoted BTC as a way for Argentina to overcome its economic problems. A document released earlier this year by the Argentine Financial Action Task Force and the Financial Stability Committee stated that crypto assets allow people to bypass central bank policies.

However, Milei's anti-central bank stance suggests that he may not believe that promoting crypto assets would harm fiscal policy.

El Salvador President Nayib Bukele recently celebrated the country's BTC bet. The government currently holds about 2700 BTC and has made an unrealized profit of $3 million.

Under the advice of the International Monetary Fund, El Salvador adopted BTC as legal tender, but Bukele still insists that buying BTC was the right move.

Efforts in other countries, such as the BTC mining project in Bhutan, have already used the technology to promote the development of the Bhutanese education sector. The success of the project will depend on events such as the upcoming BTC halving and their impact on mining profitability.

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