Argentina's New President, Javier Milei, Promises Sweeping Economic Reforms and Shows Leanings towards Cryptocurrencies
Summary:
Javier Gerardo Milei, also known as "El Loco", assumed office as Argentina's new President on December 10 and promised significant economic reforms, including dismantling the central bank. Milei, trained as a Keynesian, has evolved his economic ideology over time to align more closely with neoclassical ideals. Although he has not officially endorsed cryptocurrencies, his beliefs closely align with key crypto principles. Milei plans to dollarize Argentina's economy, noting that cryptocurrency will not be the focus of his administration.
Javier Gerardo Milei, popularly known as "El Loco" (the crazy one), took office as the new President of Argentina on December 10. He has vowed to bring widespread economic change with reforms including dismantling the central bank and restricting the government's size and expenditure. Milei won public favor by projecting his unique character during the election campaign and suggesting daring policies despite Argentina's challenging situation involving an annual inflation rate of 161% noted in November. An experienced economist with an eminent career including advisory roles to Argentina's dictatorship (1976-1983), positions in private pension funds, Banks, and as a macroeconomics and microeconomics professor.
In his early years, Milei witnessed Argentina's first debt crisis instigated by the collapse of its exchange rate, which propelled his interest in economics at age 12. Today, Milei identifies as a minarchist who supports minimal state intervention and free market systems. However, his economic ideology has evolved over time. Initially trained as a Keynesian, he transitioned to neoclassical ideals and embraced the "real business cycle theory" after obtaining two master's degrees. Currently, he perceives the government as a "criminal organization" and faults Argentina's central bank for the country's ongoing devaluation of the peso.
While Milei hasn't formally championed cryptocurrencies, his views align with essential crypto principles. He envisions a future where technology facilitates a free society where contracts play a more significant role. Milei's measures for Argentina's economic recovery don't specifically involve Bitcoin or other cryptocurrencies. Nevertheless, he has hinted that Bitcoin could serve as an alternative to monetary authorities. His promise to transform Argentina's economy into a dollar-based system indicates that the United States Federal Reserve would oversee Argentina's monetary system. Although he is seen as the "bitcoiner candidate", Milei has admitted that cryptocurrencies won't be the primary focus of his administration.
Published At
12/16/2023 5:11:00 PM
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