Argentine President Javier Milei Will Remove Central Bank And Adopt Bitcoin

Argentine President Javier Milei. (Photo; Doc. Elojodigital)

JAKARTA - Argentina underwent major political and economic changes after Javier Milei was elected president in the second round of elections. Based on preliminary results, Milei took a 56% lead over his opponent, Sergio Massa, who only won 44% of the vote.

Milei, who is a liberal and anti-Peronist economist, delivered a passionate victory speech. He stated that Argentina would start reconstruction and restore its slumped global position.

One of Milei's main agendas is to remove Argentina's central bank, which he considers a source of corruption and inflation. He also supports the use of Bitcoin as an alternative currency that can empower the private sector and restore financial control to the people.

However, Milei does not completely replace peso with Bitcoin, but rather prefers the American Dollar as the official currency in Argentina. This is to overcome inflation which has reached 142.7% at this time, which has made the value of the pesos continue to decline.

Argentina itself has become one of the countries with high crypto adoption. According to data from Chainalysis, the volume of crypto transactions in Argentina reaches $85.4 billion (IDR 1.318 trillion) and 16% of its population uses crypto. This is a way to protect their asset value from celebrity depreciation and limited access to foreign currencies.

Earlier this year, thousands of Argentine citizens took solidarity action for Bitcoin. They formed the BTC symbol with candles as a form of protest against inflation that destroyed the country's economy.

Congratulations to Milei

Milei's victory drew reactions from world leaders. Former US President Donald Trump congratulated and called Milei a leader who would take Argentina in a better direction. US National Security Advisor Jake Sullivan also expressed hope of strengthening bilateral relations with Argentina based on democratic values.

In the South American region, several leaders such as Brazilian President Luiz Inighcio Lula da Silva and Chilean President Gabriel Boric also support Milei. However, not all leaders agree with Milei's vision. Colombian President Gustavo Petro criticized Milei's neoliberal agenda and considered it unsuitable to face the challenge in Latin America.

Meanwhile, Sergio Massa, who lost to Milei, admitted the honorable defeat. He stressed the great responsibility held by Milei to lead Argentina out of the crisis. The masses themselves are supporters of the central bank's digital currency (CBDC) as a solution to inflation.