Bitcoin
Milei is not moving Argentina towards Bitcoin
CORDOBA, ARGENTINA – NOVEMBER 16: Javier Milei holds a one hundred dollar bill, Argentina. Photo by … [+] Tomas Cuesta
Getty Images
In recent weeks, there has been a wave of misleading information about Javier Milei and his stance on bitcoin. Contrary to some reports, Milei’s administration is not pushing for a Bitcoin standard in Argentina. This misunderstanding appears to result from a meeting held last week with local regulators and the Director of El Salvador’s Crypto Active division, where they exchanged experiences and approaches.
Several publications have incorrectly suggested that Milei intends to adopt bitcoin as Argentina’s official currency, similar to El Salvador. For example, headlines like “Bitcoin Friend Javier Milei Wins Argentina’s Presidential Election” It is “Argentina’s newest presidential candidate, Javier Milei, is pro-Bitcoin – what does that mean?” fueled this narrative. However, these reports do not accurately reflect Milei’s actual politics, which are much more subtle.
Although Milei has expressed positive views on bitcoin and criticized the central bank, his main economic proposal has been the dollarization of the Argentine economy, not the adoption of bitcoin as legal tender. He supports the freedom to transact. Milei’s comments about bitcoin being a “return of money to its original creator, the private sector” were taken out of context to suggest a broader political movement toward bitcoin adoption, which he did not propose.
During the recent meeting with local regulators and the Director of El Salvador’s Crypto Active division, bitcoin was not even mentioned. Instead, discussions focused on self-custody rights and regulatory frameworks for crypto assets to comply with Financial Action Task Force guidelines while supporting innovation. Argentina seeks to create a balanced regulatory environment for cryptocurrencies rather than pushing for a bitcoin standard.
SALTA, ARGENTINA – JULY 08: An Argentine flag during the Scotland Captain’s Race at Padre Stadium… [+] Ernesto Martearena, on July 8, 2022, in Salta, Argentina. Photo by Ross MacDonald
SNS Group via Getty Images
Argentina is reviewing regulations on crypto assets to align with FATF Guidelines. This involves ensuring that Virtual Asset Service Providers or VASPs comply with strict regulations, which is not a move towards adopting bitcoin as legal tender. Ricardo Mihura, president of the NGO Bitcoin Argentina, said: “Bitcoin is viewed with skepticism by Argentine authorities, who seem more committed to the FATF and IMF than to self-custody and on-chain transactions.” He also noted: “Last week, changes to a tax bill in the Senate went in this direction: only cryptocurrencies in the custody of local VASPs appear to benefit from the tax amnesty regime proposed by the Executive.”
The Central Bank of Argentina continues to deal with issues such as inflation, devaluation and exchange control, making the idea of adopting bitcoin as a primary currency even less viable. Banks and payment service providers are still prohibited from offering any type of cryptographic service or product, which includes bitcoin.
Given the current economic environment, including Milei’s main focus on dollarization and regulatory compliance, the prospect of Argentina adopting bitcoin as legal tender is not realistic. Instead, the country is more likely to continue improving its regulatory framework to accommodate the growing cryptocurrency market while ensuring financial stability.
Milei is indeed pro-bitcoin, his policies do not indicate a move towards a bitcoin standard. The current narrative appears to be a misunderstanding or an overly optimistic interpretation of her statements. It is important to distinguish between Milei’s supportive stance towards bitcoin and his actual economic policies, which prioritize stabilization and conventional and conventional regulatory adjustments and not a shift to a bitcoin economy.