Milei’s digital stance distortion emphasizes the need to read between the lines

Assuming you’ve stayed posted for crypto bombshells and the hottest news emerging within the industry and have not once wondered what the best way to buy Bitcoin is, you’re likely familiar with the countless streams of posts and headlines gasconading Argentine President Javier Milei’s Bitcoin-praising stance. Hours after the news of the politician’s presidential election triumph broke, the frenzy generated stretched the truth so much that the masses thought Argentina could be the new El Salvador. It’s been six months after the economist, politician, and Argentinian author took office, and here we are reading into overblown and mixed-up words spread by the media, once again reminding ourselves of the importance of telling fake from real news when it comes to the perplexing crypto realm—and everything beyond it. 

A bit of historical context 

Supporters of the self-described “anarcho-capitalist” Javier Milei had only reasons to rejoice after the runoff election opposing the Bitcoin supporter, now president and the national economy minister Sergio Massa, in December 2023. According to the current Argentinian leader, Bitcoin’s narrative is all about sending the power to the private sector, or the original creator of the money, which is by all means the part of the economy that should have direct control over the flow of money. 

On 10 December 2023, Milei won on the back of a captivating campaign that left the conservatory parties in the dark and pushed the right-wing forces to the peak. In many ways, the president is portrayed as an anomaly in the area of far-right politics. For what’s worth, the eccentricity of the president is in part propagated by his nickname “El Loco,” his outspoken fondness of rock music, and a few other out-of-the-ordinary appearances and standpoints. On the other hand, the president has built his political beliefs on a foundation previously sowed by Austrian economic theorists Friedrich Hayek and Ludwig von Mises. Much like Milei did, they fused authoritarianism and conservationism with economic libertarianism.  

How things got blown out of proportion  

Fast-forward seven months after Milei’s victory, and an overflow of misguiding information concerning the president’s approach to Bitcoin makes audiences question their convictions. This is why you’re now seeing the controversy make all the headlines. A meeting between the Crypto Active division’s El Salvadorian Director and the Argentinian local regulators served as a breeding ground for all the misinformation that followed. 

Some publications have mistakenly indicated that the president wants to transform Bitcoin into the national official currency like El Salvador’s. Some clickbait-like headlines have made a mountain out of a molehill, as Milei has never expressed intent to adopt Bitcoin as Argentina’s official currency. Milei’s words got mixed up and overblown to the point where some believed a push for a Bitcoin standard was underway. 

Hyperbolizing words and gestures is easy, which is why everyone is reminded to use common sense and learn to separate the wheat from the chaff. Milei has outspokenly advocated for Bitcoin thanks to its potential to reduce the central bank’s control over the national economy, expressing that the asset can resurrect it. However, the president has not once called Bitcoin the future of the country’s economy, a potential official tender, or the new standard the government seeks.

The liberty to transact as desired without banks’ surveillance and involvement is one thing, and a reconfigured economy where Bitcoin is the monetary reference is an entirely different thing and clearly not what Milei’s statements suggested.

Argentina strives for more stability 

Argentina is reviewing the cryptocurrency regulations tabled to ensure they meet the guidelines put forth by GAFILAT. Simply put, the Virtual Asset Service Providers must abide by stricter rules, which by no means denotes the country’s intent to embrace Bitcoin as legal tender. These operations should be seen as ways to regulate a chaotically managed in-use currency essential in large-scale activities like remittance transfers. 

Bitcoin Argentina ONG president Ricardo Mihura expressed that Argentine authorities are more tolerant of IMF and GAFI than blockchain transfers and self-custody. A recent modification in the Senate to a tax bill regarding crypto emphasized that only some entities take advantage of the current tax amnesty regime. As the country keeps fighting distressing issues like money devaluation, forex control, and inflation rates that surpass 140%, Milei’s transparent resistance towards banks is even more noteworthy. Payment service providers and banks are restricted from trading in crypto products or services, and Bitcoin isn’t exempted from the rule.

Due to the problematic economic landscape, Argentina’s likelihood of transforming Bitcoin into legal tender is unfeasible. However, the nation may continue to improve its regulatory environment to face the rising hurdles stemming from the growing demand for Bitcoin and other cryptocurrencies. The president strivers for better financial stability, which must not be mixed for a looming Bitcoin standard but for new economic policies that offer individuals more control over their wealth and their capital’s usage and investment. 

Eventually, it’s the dollar that’s on top of the president’s mind
The dollar is the real ambassador of the central banking system, and President Milei emphasizes this theory the most. In the most significant landslide victory the country has ever witnessed, Javier Milei is increasingly transparent about plans to dollarize the nation. First, a shift toward Bitcoin is unfeasible as the nation is inclined to meet the guidelines from the IMF, where Bitcoin is anything but a priority. On the other hand, as Bitcoin’s price in peso terms rose more than 400% this year, it’s clear that looming policies will help find the middle ground between the few monetary perspectives. 

El Salvador sees Bitcoin as the tool to free the nation from economic hurdles. Contrarily, Milei looks to the dollar to offer the answers to their problems. Bitcoin may continue to behave healthily after the changes Argentina cooks in the oven. But as the local demand for Bitcoin rises, so should the efficiency of the national economic policies to counteract inflation, turmoil, and other current oppressors. 

Bottom line 

Argentina President Javier Milei expresses intent to put an end to the banking era and dollarize the nation, not make Bitcoin legal tender, as the latest headlines may suggest. While Argentina is making progress towards financial stability, it’s important that every financial investor gets their information right and doesn’t fall victim to misleading information spread on- or offline.