Filenews 21 November 2023 - by Susie Violet Ward
Argentina has elected Javier Millay, a populist and pro-Bitcoin campaigner, as its new president. Millay, who was "rewarded" for his critical stance on central banks, won the second round of the presidential election with 55 percent, receiving about €3 million. more votes than his opponent.
The election result reflects a significant political change in Argentina. Millay has portrayed himself as an opponent of the central bank, calling it a "fraud" and an instrument of politicians to impose inflationary taxes on the people. His views resonated amid the horrific inflation crisis Argentina is experiencing, with inflation soaring to a beastly 140% year-on-year.
Millay's victory will likely be a game-changer for Bitcoin as well. The president-elect sees the world's most popular cryptocurrency as key to reviving the economy and advocates restoring monetary control to the private sector. It should be noted, however, that Millay has not proposed – at least, not yet – that Bitcoin become the official trading currency in Argentina.
Interestingly, Javier Millay served as Chief Analyst at the World Economic Forum, a position usually associated with traditional financial systems and global financial governance, in contrast to his current pro-Bitcoin stance. This gap between his professional background and his support for Bitcoin as an official medium of exchange in Argentina complicates the economic model Millay wants to serve, and raises questions about whether and how his past connection to traditional economic systems fits with his current liberal views.
The differences between Millay and deputy presidential candidate and outgoing economy minister Sergio Massa were wide. Massa had proposed the issuance of a digital currency by the central bank to fight inflation in the country, highlighting the different economic philosophy of the two policies.
Millay has heralded a "radical shift" away from traditional economic policies. He has pledged to abolish the central bank, replace the Argentine peso with the U.S. dollar and support decentralized finance. His economic approach has been described as "shock therapy," since it fundamentally differs from Argentina's current economic strategy.
Commenting on the election result in the Latin American country, Fernando Nikolic, Bitcoin market analyst and communications director at Blockstream, wrote on platform X: "The mafia that forced my family – and hundreds of thousands of others – to leave Argentina to live better was defeated by Javier Millay. My feelings cannot be described in words."
Many applaud Millay's pro-Bitcoin stance and polemic against the central bank, but worry about the new president's other views on social policy and freedoms.
Joe Nakamoto, referring to Millay's positions on abortion, said he found it difficult to understand how Millay's liberal views reconcile with his opposition to abortion, even in cases of rape. In the same vein, Ben De Waal pointed to Millay's anti-liberal positions on issues such as abortion, "a dignified death" and children's rights, as well as his penchant for conspiracy theories.
Fernando Nikolic, in an exclusive statement, gave the framework of Milay's policy on the most burning issues. He said: "Millay is one of the most important people in the country. " He has expressed his opposition to abortion, but has proposed putting the issue to a referendum, for the people to decide. That's the key. He is not a dictator and changes in laws have to go through the system. There are things that politicians say to get the vote of certain groups of citizens, I would be wary of statements by politicians ahead of the ballot box. For example, Millay has backtracked on earlier statements about the Pope and same-sex marriage. But Argentina is in a state of emergency, the country has structural and bigger problems to solve. I don't think the issue of abortion is of concern to Millay right now."
With Millay in office, Argentina could follow in El Salvador's footsteps and adopt Bitcoin as the official currency and hold tokens as a reserve asset. The integration of bitcoin into Argentina's economy could promote a more decentralized and inflation-resilient financial system, potentially boosting the value of the world's most popular cryptocurrency.
The election of Javier Millay heralds a potential new era for both Argentina's economic policy and Bitcoin's role in its financial system. The balance between Millay's bold economic strategies and the concerns raised by his social views is crucial to Argentina's future under his rule.
Performance – editing: Michalis Papantonopoulos
