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Argentinian libertarian Javier Milei elected president, to implement economic shock therapy

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Argentinian libertarian Javier Milei elected president, to implement economic shock therapy

According to Reuters, Argentina elected right-wing libertarian Javier Milei as the new president on Sunday. A Bitcoin enthusiast, his proposed economic shock therapy aims to address the triple-digit inflation, looming recession, and escalating poverty plaguing the economy. Will he follow in the footsteps of El Salvador to become another Bitcoin-friendly president?

Non-mainstream Political Figure Javier Milei Elected President of Argentina

53-year-old economist and former television commentator Milei's victory shattered the dominance of the two main political forces on the left and right. Riding the wave of voter anger against the political mainstream, Milei won with a surprising margin, garnering about 56% of the votes, while his competitor, the Peronist economy minister, only received 44% of the votes.

Argentina is facing a dire situation of hyperinflation, with an expected inflation rate of 147% in 2023. The Argentine peso (ARS) has devalued from 176 to 351 against the US dollar since the beginning of the year, nearly halving in value. People are seeking alternative solutions to protect their wealth.

Milei promises to implement shock therapy for the economy. His plan includes closing the central bank, abandoning the peso, and cutting expenses, reforms that may be painful but have resonated with voters who are angry about the economic downturn.

Milei's victory has shaken up Argentina's political landscape and economic roadmap, potentially impacting trade in grains, lithium, and hydrocarbons. Milei has criticized China and Brazil, stating that he will not deal with the "Communist Party" and supports strengthening ties with the United States.

Bitcoin President? But Milei Does Not Advocate Bitcoin as Legal Tender

Ark Invest pointed out in a report in August that Argentina's surging inflation and presidential candidates supporting Bitcoin are driving the adoption of Bitcoin in the country. The relationship between Argentina and Bitcoin is rapidly evolving.

Prior to his election, President Milei stated:

The central bank is a scam, a mechanism politicians use to deceive good people with inflation taxes. Bitcoin represents money returning to its original creators—the private sector.

Despite his positive stance on cryptocurrencies, Milei does not advocate for using Bitcoin as legal tender in Argentina. Instead, he calls for economic "dollarization," which means abolishing the peso and directly using the US dollar. This is different from the aggressive approach of El Salvador in adopting Bitcoin as legal tender.

The International Monetary Fund (IMF) conducted an on-site investigation in El Salvador: Maintains opposition to adopting Bitcoin as legal tender, should not introduce Bitcoin bonds

Economic Shock Therapy—Closing the Central Bank, Abandoning the Peso, Cutting Expenses

Milei's proposed economic shock therapy includes closing the central bank, abandoning the peso, and cutting expenses, which has raised concerns among some conservatives.

In a speech after confirming his election, Milei mentioned:

The decadent mode has ended, there is no turning back! We face enormous problems—inflation, lack of jobs, and poverty.

Milei is set to confront an empty government and central bank treasury, a $44 billion debt plan from the International Monetary Fund, close to 150% inflation, and a host of dazzling capital control issues.

Non-mainstream Political Novices Emerge One by One

Former US President Trump wrote on his Truth Social platform:

Congratulations to Javier Milei on a great victory in the Argentine presidential election. The whole world is watching! I am proud of you. You will turn around your country and truly make Argentina great again!

From the US's Trump and Ukraine's Zelensky to Argentina's Javier Milei now, these presidents from non-mainstream political backgrounds seem to be gaining more attention from voters. In Taiwan, renowned information education and entrepreneurship expert Professor Ko Ju-chun is also listed as one of the Kuomintang's at-large legislative candidates, expected to become a key driver in the fields of legal reform and digital innovation.

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