In a historic win, Javier Milei, a prominent advocate for Bitcoin, has been elected as the President of Argentina, securing over 55% of the votes in the presidential run-off election on November 19th. This victory, with a lead of over 3 million votes, marks a significant moment in Argentina’s political and economic landscape.
The presidential run-off was decisive, with Sergio Massa, the Minister of Economy, conceding defeat after 90% of the votes were counted. Milei’s inauguration is scheduled for December 10th. The election revolved around critical issues such as the nation’s severe inflation crisis, which has led to a 140% increase in annual inflation for the Argentine Peso over the past year.
Argentina is currently facing major economic challenges, with almost 40% of its population living in poverty and inflation rates reaching around 150%. The economy is on the brink of contraction, and the government has limited access to international capital markets. The central bank’s depleted reserves have raised concerns about a potential return to hyperinflation, a scenario Argentina has not experienced in nearly three decades.
Milei has been a vocal critic of Argentina’s central bank, labeling it a scam and a tool for politicians to impose inflationary taxes. His stance sharply contrasts with that of Massa, who proposed launching a central bank digital currency (CBDC) to combat inflation. Massa also proposed a global digital currency launch for Argentina, along with a law to facilitate the free use of overseas funds without additional taxes.
The announcement of Milei’s victory had a positive impact on Bitcoin, which saw a nearly 3% increase in value, reaching $37,350. Milei’s pro-Bitcoin stance, advocating for the return of money creation to the private sector, has been a key element of his economic perspective.