What are we talking about today?
Argentina is a country that is known for its rich culture, beautiful nature and, for many, for its football. But Argentina is also a country that faces many economic challenges, such as high inflation, an unstable currency and limited access to foreign exchange. In such circumstances, many residents of Argentina have turned to cryptocurrencies as an alternative way of saving, paying and investing. In November 2023. Argentina elected a new president, Javier Milea, who surprised the whole world with his libertarian orientation. Milei is an economist and media star, who advocates for a free market, a smaller role of the state, and therefore also supports cryptocurrencies. He proposed replacing the Argentine peso with the US dollar, abolishing the central bank and reducing the number of ministries, which would reduce government spending and transfer most government jobs to the private sector. How will Milei lead Argentina in the coming period, and what will be his influence on cryptocurrencies in the country? We talk about that and other things in this blog.
Source: cointelegraph
The new president of Argentina
Javier Milei is the new president of Argentina, who is up for election in November 2023. defeated the current president Alberto Fernandez, who led the center-left coalition. Milei is a libertarian by orientation, which means that he is fully in favor of the free market and as little government regulation and interference in economic matters as possible. He believes that the state is the main cause of Argentina’s economic crisis, which has lasted for decades, and that the only solution is a radical reform that will reduce taxes, public spending and debt. Milei is also a critic of the welfare state, which, in his opinion, creates dependence and irresponsibility among citizens. Milei’s views and program are in complete contrast to Argentina, which had a long tradition of populism, interventionism and protectionism. Argentina was one of the richest countries in the world at the beginning of the 20th century. century, but since then it has experienced a series of political and economic crises, which have led to a decline in living standards, poverty and inequality. Argentina was also influenced by different ideologies, from Peronism, which combined nationalism and socialism, to Kirchnerism, which advocated the redistribution of wealth and state control of key sectors. Milei, on the contrary, is an advocate of classical liberalism, which is based on individualism, freedom and the right to property. It will certainly be interesting to observe how this radical change will affect the economic situation in Argentina in the coming years.
Source: cointelegraph
Bitcoin as a currency
Javier Milei made the decision that anything two parties decide to use as a medium of exchange is also a legal medium of exchange, and it was specifically noted that this includes Bitcoin . This decision is part of his plan to reshape Argentina’s economy with an emphasis on freedom, privacy and innovation. Milei believes that Bitcoin offers great advantages such as transactions without the need for intermediaries or regulators, transparency and security, as all transactions are recorded on a public and indelible blockchain, and perhaps most importantly independence and sovereignty, as Bitcoin cannot be banned, confiscated or censored by governments or banks. Likewise, the president hopes that his decision will encourage other countries to do the same, creating a global network of countries that support Bitcoin and the crypto-industry. He believes that this is the way to stimulate economic growth, technological progress and social welfare.
Source: cointelegraph
Stablecoins in Argentina
Stablecoins are cryptocurrencies that are tied to an asset, such as the US dollar, and have a constant value. Many residents of Argentina have turned to stablecoins as an alternative way to save, pay and send money, without the need for third parties such as banks. Stablecoins also provided access to international markets and services, which were otherwise limited or unavailable because no one in the world accepted the Argentine peso. According to Bitso, one of the leading crypto-platforms in Latin America, 60% of crypto-transactions in Argentina were in dollars or stablecoins, such as USDT and USDC. These stablecoins were more in demand than Bitcoin, which is usually the most popular cryptocurrency. The reason for this is that Argentinians were looking for security and stability, not speculation and risk, that is, investments. The new changes made by President Milei, which support cryptocurrencies as a legal medium of exchange, will further improve the situation for all of Argentina. Stablecoins will become even more accessible and accepted, both by individuals and by companies and institutions.
Source: cointelegraph
Conclusion
In today’s blog, we commented on the recent political and above all economic changes in Argentina. A country that has recently elected a new president who has a completely different view of the economy than the rest of the world. He advocates the idea from which Bitcoin was born, so it will be interesting to observe how Bitcoin will behave in Argentina, where until now the use of cryptocurrencies was popular initially due to high inflation, but also due to other unfavorable economic reasons. We hope you enjoyed reading today’s blog, and that you learned something new, and if you have any questions or comments, you can always contact us on our social networks ( Instagram , Twitter ).
