Argentina’s new president: The rise of Bitcoin and the future of the central bank

Against the backdrop of today’s global economic turmoil, Argentina’s new president has proposed a controversial plan: shut down the central bank and bring Bitcoin to the mainstream. This bold vision has not only attracted widespread attention at home and abroad, but has also given rise to new thinking about the future monetary system. As a decentralized digital currency, the rise of Bitcoin in Argentina may become the next El Salvador story.

Argentina's economy has long been plagued by inflation, with currency depreciation, high unemployment, and declining living standards. According to data from the International Monetary Fund, Argentina's inflation rate reached an astonishing 100% in 2023, which has caused many Argentines to have a deep distrust of their own currency. Against this background, Bitcoin, as a currency not controlled by the government, has gradually entered people's field of vision.

The decentralized nature of Bitcoin makes it an ideal value storage tool. In Argentina, many people have begun to transfer their wealth to Bitcoin to protect against the risk of depreciation of their own currency. For example, in early 2023, an Argentine businessman named Juan converted part of his savings into Bitcoin to protect his assets from inflation. Similar cases are not uncommon, which also reflects that more and more Argentines are beginning to embrace this emerging digital currency.

The new president's proposal is not just a simple policy shift, but also a challenge to the traditional financial system. His idea is that after closing the central bank, the state will no longer intervene in the currency market, and instead Bitcoin will circulate freely. This idea is seen by many economists as both risky and full of opportunities. On the one hand, the lack of central bank supervision may lead to instability in the financial market, on the other hand, relying entirely on Bitcoin as the mainstream currency may stimulate new economic vitality.

Take El Salvador as an example. In 2021, the country became the first country in the world to use Bitcoin as legal tender. Although this move has caused a lot of controversy, the result is that the volume of Bitcoin transactions in El Salvador has increased significantly, attracting a large amount of foreign investment. Many young entrepreneurs and technical talents have flocked to try to find opportunities in this emerging market. If Argentina can learn from this experience, it may also be able to find new development opportunities in the wave of Bitcoin.

However, the situation in Argentina is not exactly the same as in El Salvador. Argentina has a relatively fragile economic foundation and a more complex social structure, and the road to promoting Bitcoin as a mainstream currency is full of challenges. First, although Bitcoin transactions are gradually becoming popular among young people, acceptance is still low among the elderly and those with poor economic foundations. In addition, although the Internet penetration rate in Argentina has increased year by year, there are still many areas with insufficient network coverage, which affects the use of Bitcoin.

More importantly, Argentina's legal and institutional environment still needs to be further improved. The use of Bitcoin involves multiple aspects such as taxation, supervision and consumer protection. How to avoid potential financial crimes and money laundering while ensuring market freedom is a major issue that the new government must face. In this process, the government needs to conduct in-depth dialogue and cooperation with all stakeholders to establish a legal framework that can both promote the development of Bitcoin and protect the interests of the people.

In public discussions, opinions vary on the future of Bitcoin. Supporters believe that Bitcoin will bring new economic vitality to Argentina and help the country get rid of its long-standing economic difficulties. Opponents, on the other hand, worry that the implementation of this policy may lead to chaos in the financial market and bring greater risks to ordinary people. Because of this, how to find a balance between the two has become an urgent problem for the new Argentine government to solve.

Against this backdrop, Argentina's financial technology industry has also ushered in new opportunities. With the popularity of Bitcoin, related financial technology companies have sprung up like mushrooms after rain. Many entrepreneurs have begun to develop Bitcoin wallets, trading platforms and payment systems, trying to provide users with more convenient and secure services. For example, a startup called "BitAr" focuses on providing educational services on Bitcoin trading and investment for Argentine users, helping them better understand and use this digital currency.

In addition, young people in Argentina also played an important role in this process. Many young people are full of enthusiasm for new technologies. They not only actively participate in Bitcoin transactions, but also share their investment experiences on social media, forming a large Bitcoin community. The formation of this community not only promotes the spread of Bitcoin in Argentina, but also provides fertile soil for the exploration of new economic models.

Of course, the rise of any new thing is accompanied by risks. In Bitcoin investment, the price fluctuates violently and the market uncertainty is high. Investors need to have sufficient risk awareness. For ordinary people, how to protect their wealth in this unknown field is a question that needs to be seriously considered. Therefore, while promoting the development of Bitcoin, the government should also strengthen financial education for the public, improve their investment literacy, and help them make more wise decisions.

As time goes by, where Argentina's new policy will go remains an open question. However, the tide of history always moves forward. As the global financial system continues to change, Argentina's attempt undoubtedly provides other countries with a new perspective and thinking. Perhaps, in the near future, Bitcoin will not only be Argentina's currency, but will also become an important part of the global economy.

Regardless of the outcome, Argentina's exploration will become part of global financial history and is worth everyone's attention and thinking. How will the future monetary system evolve? Can Bitcoin take root and thrive in Argentina? These questions are not only about Argentina's future, but also about every individual who hopes to seek opportunities in the digital economy. In this era full of challenges and opportunities, only by constantly thinking and exploring can we find our own answers.

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Coin Circle (120BTC.COM) News: The results of the second round of the Argentine presidential election were released this morning (20). The Bitcoin-friendly far-right candidate Javier
Milei won the election by defeating incumbent Economy Minister Sergio Massa.
Official statistics show that over 90% of the votes have been counted, showing that Javier Milei has received 56% of the votes, significantly higher than Masha's 44%. Javier Milei will take office on December 10.
Javier Milei says he wants to close the central bank to save Argentina
Argentina is currently experiencing terrible hyperinflation. According to data released last week, the country's annual inflation rate reached 142.7% in October, with a monthly increase of 8.3%. Although it is lower than the peak in August and September, it still makes the Argentine people miserable.
To solve this problem, Javier, an economist
Milei, who supported the Austrian school of economic thought and was a firm believer in laissez-faire capitalism, believed that the establishment of the Central Bank in 1935 was the beginning of all Argentina's problems and therefore proposed closing the Central Bank of Argentina.
“Before the central bank, Argentina was the richest country in the world, and from 1880 to 1935, inflation averaged only 0.9% per year. The creation of the central bank in 1935 fooled the people: inflation jumped to an average of 6% per year. The central bank was nationalized in 1946, and by 1991 inflation averaged 250% per year. It was an unmitigated disaster.”
His other political views include: replacing the battered peso with the US dollar, drastically cutting the social welfare budget, etc. It is worth our continued observation whether Mireille will really implement his radical political views in the future and whether he can really save Argentina's poor economy.
Javier Milei: Bitcoin will become mainstream after the central bank is closed
In Javier Milei's vision, Bitcoin will become the mainstay as a remedy for Argentina's inflation after the closure of the central bank. Before the presidential election, Javier
Milei has promoted the benefits of Bitcoin and cryptocurrency in many talk shows. "Bitcoin can eliminate the central bank," said Javier Milei.
Bitcoin Argentina spokesperson Zocaro believes that Argentina has seen an increasing trend in the use of cryptocurrencies since around 2020, with many people starting to buy Bitcoin and stablecoins.
To send money to family and friends abroad, or to buy goods from abroad, more and more people are turning to cryptocurrencies, despite all the international restrictions, as they are a way to protect value for Argentines who may only be able to afford bread in the evening with the money they bring out to buy bacon in the morning.
“Cryptocurrency is completely legal in Argentina. People are beginning to notice the inflation of the US dollar and see Bitcoin as a possible alternative. Most young Argentines prefer Bitcoin, Ethereum and stablecoins. Some provinces such as Mendoza have taken measures to allow people to pay taxes with cryptocurrencies.”
Although many older Argentines still prefer to hold US dollar cash, more and more young people and residents are beginning to prefer stablecoins. "They don't need to handle cash and can complete transactions through their mobile phones," said a platform that provides cryptocurrency transactions for Argentine users, two-thirds of whom are under 35 years old.
Argentina the next El Salvador?
Javier
Milei's bold vision and radical reforms are supported by most groups, but he also faces strong resistance from many large institutions, authorities and social forces. Some people think that he deliberately embraces cryptocurrency in order to attract young votes.
Most importantly, some professionals said that Argentina would not be able to pay through Bitcoin because the Argentine Senate approved a $45 billion debt agreement with the International Monetary Fund (IMF), one of the terms of which did not encourage the use of cryptocurrencies.
Whether Javier Milei will really embrace cryptocurrency in the future and even become the next Salvador will take more time to prove.