Argentina has recently witnessed a political shift with the election of the far-right candidate Javier Milei, known for his strong anti-central bank stance. Notably, Milei is a vocal supporter of Bitcoin, emphasizing its role in returning money to its original creators. However, the core focus of Milei’s policy lies in advocating for full dollarization rather than a reliance on cryptocurrencies.
That said, several factors contribute to Argentina’s growing interest in cryptocurrencies, with escalating inflation rates being a primary driver. In 2023, the inflation rate in the country reached an astonishing 147%, creating an environment conducive to alternative financial solutions. Milei’s pro-Bitcoin stance further adds momentum to the cryptocurrency movement in the nation, as he secured victory in the summer election on August 13.
At the time, his electoral triumph hinted not only at potential shifts in economic policies but also triggered a notable 20% surge in Bitcoin’s value, reaching 10.2 million Argentine pesos within a single day, as highlighted by insights from David Puell.
While El Salvador initially led the way in the Bitcoin revolution by being the first nation to adopt the cryptocurrency, its usage has seen a plateau outside of specific tourist destinations. Argentina, on the other hand, has emerged as a frontrunner in driving Bitcoin adoption, surpassing El Salvador’s early strides. This shift in momentum was recently underscored in an investor note by David Puell, a research associate at Ark Invest.
Argentina To Topple El-Salvador In Bitcoin Adoption?
Puell referenced insights from Angela Dalton, CEO of Signum Growth Capital, who observed this trend during a recent visit to El Salvador. Dalton noted that while awareness of Bitcoin is widespread in the country, practical usage remains limited. Despite this, the population takes pride in being early adopters of novel technologies, reflecting the broader sentiment toward embracing innovations in the financial sector.
Elsewhere in the world, U.S., Republican presidential candidate Vivek Ramaswamy, shared his views on Bitcoin and the Biden administration’s energy policies in a recent interview. As reported by TronWeekly, he also outlined a crypto policy framework, which aims to protect BTC from government interference.
Ramaswamy characterized Bitcoin as a means of navigating away from the perceived shortcomings of the financial system constructed by the U.S. Federal Reserve System. He conveyed his intention to maintain the dollar’s status as the global reserve currency. Concurrently, he asserted that BTC serves as a mechanism to ensure the integrity of the dollar, preventing unfair adjustments.