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Milei is not moving Argentina towards Bitcoin
CORDOBA, ARGENTINA – NOVEMBER 16: Javier Milei holds a hundred dollar bill, Argentina. Photo by … [+] Thomas Cuesta
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In recent weeks there has been a wave of misleading information about Javier Milei and his stance on bitcoin. Contrary to some reports, the Milei administration is not pushing for a bitcoin standard in Argentina. This misunderstanding appears to stem from a meeting held last week with local regulators and the director of El Salvador’s Crypto Active division, where they exchanged experiences and approaches.
Several publications have incorrectly suggested that Milei intends to adopt bitcoin as Argentina’s official currency, similar to El Salvador. For example, headlines like “Bitcoin-friendly Javier Milei wins Argentina’s presidential election” AND “New Argentine presidential candidate Javier Milei is pro-Bitcoin: what does it mean?” have fueled this narrative. However, these reports do not accurately reflect Milei’s actual politics, which are much more nuanced.
Although Milei expressed positive views on bitcoin and criticized the central bank, his main economic proposal was thedollarization of the Argentine economy, not the adoption of bitcoin as legal tender. She supports the freedom to transact. Milei’s comments about bitcoin being a “money return to its original creator, the private sector” were taken out of context to suggest a larger political step toward bitcoin adoption, which she did not propose.
During the recent meeting with local regulators and the director of El Salvador’s Crypto Active division, bitcoin was not even mentioned. Discussions instead focused on self-custody rights and regulatory frameworks for cryptocurrencies to comply with Financial Action Task Force guidelines while continuing to support innovation. Argentina is trying to create a balanced regulatory environment for cryptocurrencies rather than pushing for a bitcoin standard.
SALTA, ARGENTINA – JULY 8: An Argentine flag during the Scottish Captain’s Run at the Estadio Padre… [+] Ernesto Martearena, on July 8, 2022, in Salta, Argentina. Photo by Ross MacDonald
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Argentina is reviewing cryptocurrency regulations to align with FATF guidelines. This involves ensuring that virtual asset service providers or VASPs adhere to strict regulations, which is not a step towards adopting bitcoin as legal tender. Ricardo Mihura, president of the NGO Bitcoin Argentina, said: “Bitcoin is viewed with skepticism by Argentine authorities, who appear more committed to the FATF and IMF than to self-custody and on-chain transactions.” He further noted: “Last week, amendments to a tax bill in the Senate went in this direction: only cryptocurrencies held in local VASPs appear to benefit from the tax amnesty regime proposed by the Executive.”
The Central Bank of Argentina continues to deal with issues such as inflation, devaluation and forex control, making the idea of adopting bitcoin as a primary currency even less feasible. Banks and payment providers are still prohibited from offering any type of crypto service or product, including bitcoin.
Given the current economic environment, including Milei’s primary focus ondollarization and regulatory compliance, the prospect of Argentina adopting bitcoin as its legal tender is unrealistic. Instead, it is more likely that the country will continue to improve its regulatory framework to accommodate the growing cryptocurrency market while ensuring financial stability.
Milei is in fact pro-bitcoin, his policies do not indicate a move towards a bitcoin standard. The current narrative appears to be a misunderstanding or an overly optimistic interpretation of her statements. It is important to distinguish between Milei’s supportive stance towards bitcoin and his current economic policies, which prioritize mainstream and conventional regulatory stabilization and adjustments and not the transition to a bitcoin economy.