Bitcoin Surges Against Argentine Peso as Bitcoin-Supportive Presidential Candidate Gains Traction
Bitcoin has reached a new all-time high against the Argentine peso following the success of Javier Milei, a Bitcoin-supportive presidential candidate, in the nation’s primary elections. Here are the key points:
- Bitcoin now trades for $10,258,244.60 ARS, up 21% over the past 5 days.
- The persistent high inflation of the peso has contributed to Bitcoin’s strong performance against the currency over time.
- Last month, Argentina’s annual inflation rate reached an alarming 115%, compared to Bitcoin’s 76% growth against the US dollar.
- Javier Milei, leader of La Libertad Avanza, aims to abolish Argentina’s central bank and replace the peso with the dollar.
- He has also proposed using Bitcoin as a potential inflation hedge due to its fixed supply of 21 million coins.
Argentina is currently one of the top countries for crypto adoption globally. However, the government’s decision to devalue the peso by 20% after Milei’s success has further worsened the economic situation. Here are the additional details:
- The devaluation of the peso has led to a decline in locals’ purchasing power and increased the cost of living.
- Milei would need approval from Congress to replace the peso if he becomes President, or he may opt for a referendum.
Hot Take: The rise of a Bitcoin-supportive candidate and the devaluation of the peso highlight the growing interest in cryptocurrencies as a potential solution to economic instability. It will be interesting to see how Argentina’s crypto adoption and potential currency reforms unfold in the coming months.
By
By
By
By