The recent election of libertarian Javier Milei as president of Argentina could potentially strengthen the country's use of cryptocurrency, according to an analysis shared by Grayscale, the largest digital asset management company.
Milei's ambitious plans to reform monetary policy and possibly shut down the Central Bank of Argentina have set the stage for potential ripple effects in both the traditional finance and cryptocurrency worlds.
Following Milei's successful bid to become the leader of South America's second-largest economy, the price of Bitcoin hit its highest level in more than a year and a half, reaching almost $38,000. The unorthodox politician touted Bitcoin as “the return of money to the private sector, which is its true owner.”
Argentine citizens have long suffered from hyperinflation and the local currency losing more than 100% of its value against the US dollar year on year. The country's monetary struggles, including hyperinflation that reached 143% in consumer prices, were highlighted by Grayscale Research.
According to Grayscale, Milei's presidency could pave the way for greater acceptance and integration of cryptocurrencies in the Argentine economy, offering a potential solution to these long-standing problems.
*This is not investment advice.