How to fulfill election-campaign promises properly

Argentina found itself at the brink of a new era with the election of libertarian Javier Milei as president. A mere 11 days into his tenure, Milei has already embarked on fulfilling one of his electoral promises. The latest buzz echoes from the country’s legal corridors: Argentina’s courts will now formally acknowledge contracts denominated in Bitcoin. This groundbreaking announcement was made by Diana Modino, the Minister of Foreign Relations and International Commerce, in her X account.

“We ratify and confirm that in Argentina, contracts can be agreed in Bitcoin. And also any other crypto and/or species such as kilos of steer or liters of milk,” she declared in her official statement.

This regulation essentially grants Argentine citizens and businesses the freedom to transact in any payment method of their choice, irrespective of its legal tender status within the country. However, it’s quite obvious that cryptocurrencies will seize the spotlight. Especially considering the populace’s ongoing shift toward crypto assets in recent years, as a hedge against the relentless inflation.

By recognizing cryptocurrencies, not only does the Argentine government empowers its citizens but also unlocks a multitude of transactional and investment opportunities for the government itself, infusing new vigor into the national economy.

The specifics of the regulations and policies remain still unknown. But it’s undeniably just the inception of Milei’s crusade against corruption entrenched within the traditional financial system.

“The central bank is a scam, a mechanism by which politicians cheat the good people with inflationary tax,” Milei declared mere weeks ago. “Bitcoin is the natural reaction against central banker scammers and to make the money private again.”

Argentina now stands as the second South American nation to formally embrace cryptocurrencies. However, unlike El Salvador’s incremental steps to augment its financial infrastructure with Bitcoin, Milei seems intent on a radical overhaul. He vows to discard the Argentine peso in favor of the US dollar while abolishing the Argentine central bank.

Primarily, the Argentine government endeavors to galvanize domestic economic growth and combat the staggering inflation, forecasted to hover around 200% in both 2023 and 2024.

Nevertheless, as the second-largest economy in South America, Argentina’s pioneering move could catalyze a seismic shift in crypto adoption throughout the continent and potentially worldwide.

This paradigm shift in Argentina’s financial landscape signifies just the initial stride of the newly elected president into the realm of cryptocurrencies and financial markets as a whole.

53-year-old Javier Gerardo Milei once strummed in a rock band during his youth. Now he appears determined to infuse a rock-n-roll cadence into politics and economics. As onlookers, we await the results of this audacious experiment, eager to witness the outcomes of Milei’s endeavor to revolutionize Argentina’s (and, hopefully, not only Argentina’s) economic landscape.