Milei’s Misconception: Separating Fact from Fiction on Argentina’s Bitcoin Stance
The recent presidential election in Argentina has sparked a flurry of misinformation regarding Javier Milei’s stance on Bitcoin. Contrary to popular belief, Milei’s administration is not pushing for a Bitcoin standard in Argentina. This misconception stems from a meeting between local regulators and the Director of the Crypto Active division from El Salvador, where they exchanged experiences and approaches.
Regulatory frameworks for crypto assets
Several publications have incorrectly suggested that Milei intends to adopt Bitcoin as Argentina’s official currency, similar to El Salvador. However, these reports do not accurately reflect Milei’s actual policy, which is much more nuanced. While Milei has expressed positive views on Bitcoin and criticized the central bank, his main economic proposal has been the dollarization of the Argentine economy, not the adoption of Bitcoin as legal tender.
Dollarization of the Argentine economy
Milei’s comments about Bitcoin being a “return of money to its original creator, the private sector” have been taken out of context to suggest a broader policy move towards Bitcoin adoption, which he has not proposed. During the recent meeting with local regulators and the Director of the Crypto Active division from El Salvador, Bitcoin was not even mentioned. Instead, the discussions focused on self-custody rights and regulatory frameworks for crypto assets to comply with Financial Action Task Force guidelines while still supporting innovation.
Complying with Financial Action Task Force guidelines
Argentina is reviewing the regulations on crypto assets to align with GAFI guidelines. This involves ensuring that Virtual Asset Service Providers or VASPs adhere to stringent regulations, which is not a move towards adopting Bitcoin as a legal tender. Ricardo Mihura, president of ONG Bitcoin Argentina, said, “Bitcoin is viewed with skepticism by Argentine authorities, which seem more committed to the GAFI and IMF than with self-custody and on-chain transactions.”
Regulatory environment for cryptocurrencies
The Central Bank of Argentina continues to deal with issues such as inflation, devaluation, and forex control, making the idea of Bitcoin adoption as a primary currency even less feasible. Banks and payment service providers are still banned from offering any type of crypto services or products, which includes Bitcoin.
Central Bank of Argentina’s priorities
Given the current economic environment, including Milei’s primary focus on dollarization and regulatory compliance, the prospect of Argentina adopting Bitcoin as legal tender is unrealistic. Instead, the country is more likely to continue enhancing its regulatory framework to accommodate the growing crypto market while ensuring financial stability.
Financial stability in Argentina
In conclusion, it is essential to distinguish between Milei’s supportive stance towards Bitcoin and his actual economic policies, which prioritize stabilization and mainstream, conventional regulatory adjustments and not a shift to a Bitcoin economy.
Misconceptions about Milei’s Bitcoin stance
