Overview

The party led by Argentine President Javier Milei, La Libertad Avanza (LLA), achieved a significant victory in the recent midterm elections. However, the cryptocurrency industry is not celebrating yet. Despite Milei’s pro-crypto speeches, actual advancements in crypto policies are lacking.

Milei’s Position on Cryptocurrency

Milei gained popularity in the crypto community for calling central banks “a scam” and declaring Bitcoin to be the logical response to these institutions. He has indicated that cryptocurrencies could alleviate economic issues in Argentina, affirming, “There will be free competition of currencies, so if you want to use Bitcoin, there will be no problems.”

Legislative Constraints

Despite his supportive statements, concrete actions to support crypto frameworks have been minimal. A proposed law aimed at regulating cryptocurrencies faced amendments that removed vital provisions for investors, leading to criticism from stakeholders.

Expert Opinions

Carlos Maslatón, a financial analyst, remarked that despite discussing Bitcoin with Milei back in 2013, he is not sure if Milei fully understands its implications. Ramiro Marra noted a lack of knowledgeable individuals in the government about cryptocurrencies, indicating a risky situation for any forthcoming regulations.

Miscellaneous Challenges

Milei’s administration faced scandal in the memecoin market, particularly with the ill-fated Libra token, which led to scrutiny and even an investigation by the Chamber of Deputies, though no direct accusations were made against him.

Public Sentiment

As protests arise against austerity measures, the new electoral success may empower Milei to pursue his intended political changes, and the future for cryptocurrency in Argentina remains uncertain. Gustavo Cordoba noted that despite low approval ratings before the elections, many chose to give the government one more chance.

Statement from Donald Trump

In an unexpected endorsement, former President Donald Trump stated, “In Argentina, I want to congratulate the victor. And he had a lot of help from us.”

Itai Hagman, a Peronist politician, criticized this interference, insisting that voters would prioritize their own interests over external influence.

Conclusion

While the LLA’s victory shifts the political landscape, the role of cryptocurrencies in Milei’s agenda is yet to be clarified.