- Milei began cleaning up the financial landscape of the Central American country just three days after implementing the Peso Devaluation.
- The devaluation of the Peso means that the official value set by the president is now aligned with the private markets.
- There have also been some cuts in spending in the country. For instance, government advertisements will not be allowed for a year, and contracts that are currently less than a year will not be renewed.
Argentina’s new President, Javier Milei, drew attention with his latest move for Peso Devaluation: Any developments regarding Bitcoin?
President Javier Milei’s Peso Move
Argentina’s new President, Javier Milei, began cleaning up the financial landscape of the Central American country just three days after implementing the Peso Devaluation. Milei initiated the cleanup operation with the devaluation of the Peso.
With this devaluation, he evaluated the Argentine Peso against the US Dollar (USD) by reducing the value of the fiat currency by 50%, from the previous value of 400 Pesos against the USD to now 800 Pesos. This further emphasizes Milei’s mission to dollarize the Argentine economy and deviates significantly from the goal of the BRICS Group, which recently sent an invitation to Argentina.
The devaluation of the Peso means that the official value set by the Argentine president is now aligned with the private markets. Recently, in such private markets, the Peso traded at up to 1000 Pesos in some places. Meanwhile, the current administration under Milei’s leadership did not make any effort to remove capital controls that limit the Peso to a ratio of 400. This is noteworthy as the previous government imposed this situation.
There have also been some cuts in spending in the country. For instance, government advertisements will not be allowed for a year, contracts that are currently less than a year will not be renewed, support for public transportation will be reduced, and support for electricity, gas, and water will be canceled.
No Bitcoin Integration in Argentina for Now
With these changes, many crypto enthusiasts expected Milei to immediately turn to Bitcoin (BTC) and considered this new development as an excellent opportunity for him to bring his interest in the flagship cryptocurrency into official government policy. However, observers who thought Milei would disappoint them by not turning to Bitcoin immediately.
Milei mentioned during his campaign to become Argentina’s president that he had a series of major plans, and it seems he has already made a fast start. He once said he planned to scrap Banco Central de la República Argentina (BCRA), the country’s central bank. According to him, closing BCRA is ‘non-negotiable.’ Meanwhile, it is not yet clear whether Milei will eliminate the central bank or turn to Bitcoin.
