Argentina’s President, Javier Milei, has expressed his support for Bitcoin and called for an open competitive market for currencies. In a tweet, Milei stated that Bitcoin would be included in the open market alongside other forms of transaction in Argentina. This endorsement comes as Milei continues his efforts to revive the country’s struggling economy since taking office in December 2023.
Milei has long been a supporter of cryptocurrencies and believes that Bitcoin’s scarcity-driven monetary system empowers citizens. His recent comments have been well-received by the Bitcoin community, with figures like former VanEck executive Gabor Gurbacs expressing their support. Gurbacs also highlighted the economic approaches in Central and South America, particularly in Argentina and El Salvador, as valuable models for the world to learn from.
Argentina is accelerating its adoption of cryptocurrencies and is engaging in discussions with El Salvador to learn from their experience of using Bitcoin as a legal tender. Likewise, Maya Parbhoe, a presidential candidate in Suriname, has promised to adopt a similar approach to Bitcoin if elected, aiming to replace the Surinamese dollar with the cryptocurrency.
However, despite Milei’s enthusiasm for Bitcoin, his administration has faced criticism, particularly from the crypto community, for implementing regulatory measures that are seen as restrictive. Earlier this year, the Argentine government passed a law tightening regulations on virtual asset service providers, which was seen as contradictory to Milei’s pro-crypto stance.
The economic crisis in Argentina has led to a surge in demand for Bitcoin as a safe-haven asset, as the value of the peso continues to decline. Over the past year, the Argentine currency has experienced a significant decline of 75% against the US dollar. As a result, Argentines are turning to Bitcoin to protect their savings and avoid the sharp depreciation of the peso. Major crypto exchanges in Argentina have reported a significant increase in Bitcoin purchases.
Argentina is already a prominent center for crypto adoption, ranking among the top 10 countries globally. It is the third-largest market for peer-to-peer Bitcoin trading after the US and Russia. Additionally, the country’s low energy costs make it a key center for Bitcoin mining in Latin America.
The adoption of Bitcoin for specific transactions is also growing in Argentina. In December 2023, the Foreign Affairs Minister, Diana Mondino, announced economic reforms that allow the use of cryptocurrencies for certain payments, such as rent payments from tenants to landlords. Furthermore, an energy provider in Argentina recently sealed a Bitcoin mining deal, utilizing associated gas to power 1,200 ASIC mining rigs in Patagonia.
The combination of Argentina’s thriving crypto industry and President Milei’s pro-crypto policies indicate a path towards further crypto adoption in the country.
