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In spite of the IMF obliging the Argentine central bank to say it wouldn’t entertain Bitcoin, the next potential president is very much pro the king of the cryptocurrencies.
IMF should be concerned
When the International Monetary Fund (IMF) forced the Argentine central bank to guarantee that it wouldn’t dabble in bitcoin, on pain of having its last crucial loan denied, the global financial agency must have thought that it had stopped bitcoin from being used in at least one Latin American country.
A short time later, and the IMF must be feeling more than a trifle worried as a libertarian pro-Bitcoin candidate looks to be about to win the country’s presidential primary elections with more than 90% of the vote already counted.
Central bank is a scam
Javier Milei, young leader of La Libertad Avanza party, is not a meek and mild libertarian either. He is openly campaigning to abolish the Argentine central bank, calling it a “scam”.
Such a statement is inflammatory in the extreme and will probably be taken by many from the Argentine elites and the banking sector as the rantings of a revolutionary hot head.
However, the presidential hopeful has shown in interviews that he understands how money works, and he is calling out politicians and the central bank for cheating people with an “inflationary tax”.
Milei had the following to say in an interview:
“The problem is that governments are not going to want to give up compulsory use of fiat currency. Bitcoin is the natural reaction to central bank fraud, but allowing money to become private once more isn’t something the thieving politicians will allow.”
In past times, such language used by an aspiring politician, let alone one that would be president of his country, would have been denounced by the ruling class and would have been enough to see that this person got nowhere near any position of power.
Argentina running out of options
However, this is Argentina, a country that has played the IMF game for many decades, with presidents and top bank officials doing exactly as they were told, only for Argentina to lurch from one default crisis to another, over and over again, with citizens' purchasing power in the Argentine peso practically going to zero, and with an annual inflation rate of well over 100%.
For Argentina to move onto the sound money base that is Bitcoin, could be a very interesting move for the country. That the elites in Argentina, plus the powers that be across the globe, might allow such a decision is something else.
Argentina is in an extremely precarious financial position, and has only just managed to avoid default just recently with the help of China and the Latin American Development Bank. It will take a very brave and resolute leader to oversee such an incredible transition. For Argentina, there may be no other option.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.