- Javier Milei has finally confirmed his plans to abolish Banco Central de la República Argentina (BCRA), the country’s Central Bank.
- Milei has plans to dollarize the economy because of significant imbalances between the Argentine Peso and the American Dollar.
- Among the expected changes in the near future is the privatization of key government institutions to increase overall efficiency.
Javier Milei, Argentina’s new president, has expressed his determination to close the country’s central bank when he takes office.
Milei Confirms Plans to Close the Central Bank
After winning the presidential election with radical promises, Javier Milei has finally confirmed his plans to abolish Banco Central de la República Argentina (BCRA), the country’s Central Bank. According to a statement from Javier Milei’s office, the “closure of the central bank is not a matter of negotiation,” and steps will be taken to end the operations of the central bank.
The Central Bank was established on May 20, 1935, with the aim of controlling the country’s money supply. However, the country has recently experienced significant inflation and currency devaluation, and Milei believes these events have occurred due to corruption and unnecessary resource allocation.
As the country prepares for the Javier Milei era, officially starting on December 10, new realities are on the horizon. Milei has plans to dollarize the economy due to significant imbalances between the Argentine Peso and the American Dollar. While plans to replace the Central Bank seem challenging enough, more radical changes are expected, as stated in the press release.
In line with his commitment to control state spending, Javier Milei announced that the country’s Social Security Administration (ANSES) would be led by economist Osvaldo Giordano. Among the other expected changes in the near future is the privatization of key government institutions to increase overall efficiency.
While these reforms are applauded by many, experts express concerns about the likelihood of reaching some plans due to the libertarian coalition’s minority status in Congress.
Can Bitcoin Be the Savior?
One of the impressive features that helped Javier Milei garner enough support from the public is his advocacy for Bitcoin (BTC). Although he has not yet indicated whether he considers adopting Bitcoin in any capacity during his administration, his positive stance is seen as a promising sign.
As previously reported, Bitcoin advocate and President of El Salvador, Nayib Bukele, cleared the way for a diplomatic visit with the new President of Argentina led by Max Keiser. Speculation has increased that a similar push could be seen after this visit, as seen when MicroStrategy founder Michael Saylor spoke to Tesla CEO Elon Musk about Bitcoin and then directed his company to buy the cryptocurrency.
Especially after Argentina introduced a blockchain Digital Identity (ID) solution aimed at improving state operations with QuarkID and zkSync in the capital Buenos Aires, the country is taking the lead in blockchain integration.
