Argentine Government Defends the Extinction of BCRA and Strongly Supports Bitcoin in Historic Movement

In an audacious political about-face, newly elected Argentine President Javier Milei reaffirmed his determination to abolish the Central Bank of the Argentine Republic (BCRA). This decision, full of controversies and debates, comes at a critical time for the Argentine economy, which is fighting against rampant inflation.

“In relation to the false rumors that are spreading, we want to clarify that the closure of the Central Bank of the Argentine Republic (BCRA) is not a negotiable matter”, assured the Office of President Milei, through an official statement released on Twitter. This position puts the Argentine government on a collision course with traditional economic practices, signaling a radical change in the country’s monetary policy.

Milei has been a fierce critic of central banks, describing them as “fraud” and accusing them of imposing an “inflationary tax” on citizens. These statements reflect his vision of a more liberal economy, where control of money would be in the hands of the private sector, and not the government. His proposal to replace the Argentine peso with the US dollar is a step in that direction, albeit with significant implications for the country’s monetary sovereignty.

pic.twitter.com/O7WEAjYdKY

— Office of President Javier Milei (@OPEArg) November 24, 2023

Furthermore, President Milei’s enthusiasm for Bitcoin is notable. He sees cryptocurrency as “the return of money to its original creator, the private sector,” a stance that resonates with cryptocurrency advocates. Bitcoin’s limited supply is seen by Milei as an antidote to the inflationary tendencies of government fiat currencies.

Milei’s election has already had a noticeable impact on the Argentine cryptocurrency market. After his victory, Bitcoin prices reached historic highs in the country, a clear indication of investor optimism with his pro-crypto and anti-central bank rhetoric.

Argentina, which faces annual inflation of 120% in September 2023, is at an economic crossroads. The radical measures proposed by Milei can be seen as a desperate attempt to regain economic stability or as a risky move that could worsen the country’s already fragile situation.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.