Javier Milei, Argentine President, promoted the Libra meme coin, only to retract his support after the coin’s rapid price fluctuations. This has raised impeachment calls from opponents and implicated his sister. Argentina’s inflation crisis has driven a surge in cryptocurrency adoption, complicating Milei’s austerity measures that continue to spur rising unemployment and poverty rates.
On February 14, Javier Milei, the President of Argentina, shared a link promoting the Libra meme coin on the social media platform X, emphasizing its goal to stimulate the Argentine economy. However, within a few hours, he deleted the post, stating that he was unaware of the project’s particulars and chose not to endorse it further after his review.
In the brief period before deletion, Libra’s value surged from mere pennies to nearly $5, only to subsequently plunge back to a similar low. This incident has ignited calls from Milei’s political adversaries for his impeachment. The controversy has also implicated his sister and close advisor, Karina Milei, due to her prior engagement with a cryptocurrency consultant at the Casa Rosada, leading to Milei’s connection with Libra. Notably, Milei refuted allegations of wrongdoing and claims that he did not deceive investors despite the financial losses suffered by his supporters.
Argentina continues to grapple with rampant inflation, causing the national currency, the peso, to depreciate daily. As a response, many Argentinians are converting their pesos into US dollars or other stable assets to mitigate the impact of rising living costs. According to Forbes, Argentina boasts the highest cryptocurrency adoption rate in the Western Hemisphere, a trend attributable to the population’s search for economic stability.
Matías Vernengo, an esteemed economics professor, remarked, “In Argentina, and in a situation like this, [crypto] has an appeal. Crypto offers not just a possibility of escaping the devaluation of the peso, but also perhaps making a buck.”
Known for his unconventional policies, Milei is actively working to enhance the central bank’s reserves and eliminate currency controls by the year 2026. His austerity measures encompass significant government workforce reductions, the closure of agencies, cuts to subsidies, suspension of infrastructure projects, and wage and pension freezes that fall below inflation levels. Despite improvements in inflation rates and a narrowing gap between the official and black-market “Blue Dollar,” both unemployment and poverty rates have escalated.
As this scandal unfolds, Milei achieved a significant legislative win in the Senate by successfully canceling this year’s primary elections in advance of the midterm vote in October, where his party currently holds only 6 of the 72 seats. Notably, he also attended the Conservative Political Action Conference, where he presented a chainsaw to technology entrepreneur Elon Musk, further exacerbating his attention in the media.
In summary, Javier Milei’s recent endorsement of the Libra meme coin has led to a significant political controversy, with potential impeachment discussions emerging. The Argentine economy, characterized by high inflation and a heavy reliance on cryptocurrencies, complicates Milei’s proposed austerity measures. As the situation develops, his political strategy appears to focus on bolstering support amidst growing criticism.
Original Source: gfmag.com
