Argentina’s Pro-Bitcoin Candidate Javier Milei Pledges to Shut Central Bank

Javier Milei, the leading presidential candidate in Argentina and a strong Bitcoin advocate, has proposed a drastic economic plan to address the nation’s economic issues. As per a Bloomberg report, the radical libertarian has pledged to close the nation’s central bank, dramatically reduce spending, and dollarize the $640 billion economy if he is elected.

Sweeping Economic Changes

Milei’s plan includes slashing spending by at least 13% of gross domestic product before mid-2025 through measures such as downsizing public works, reducing the number of ministries, and removing subsidies and capital restrictions. His proposal would allow businesses to transact in US dollars, effectively dollarizing the economy. One of his more radical moves is the proposal to shutter the central bank, which he believes has “no reason to exist.”

Initial reactions to the news of Milei’s primary win saw traders selling stocks and dollar bonds, introducing uncertainty into asset pricing. However, prices soon stabilized, and the local stock market closed over 3% higher.

Per Reuters, Milei and fellow candidate Bullrich advocate for a sharp shock economic cure for Argentina, which is struggling with inflation of 116%, a higher interest rate, negative net foreign currency reserves, and a maze of capital controls in place to protect the plunging peso.

Challenging the Status Quo

However, Milei’s positions have been described as radical and unconventional. The 52-year-old politician is an admirer of former US President Donald Trump and has also made controversial statements. According to reports, the statements include claims that climate change is a lie, characterizing sex education as a ploy to destroy the family, and expressing support for easier handgun ownership.

Milei’s supporters are optimistic about the upcoming election. Celebrations were held at his electoral headquarters in downtown Buenos Aires after the primary win. The candidate’s support is expected to grow as the election in October approaches.

Libertarian and pro-#bitcoin candidate, Javier Milei, has taken a commanding lead in the Argentinian primary elections. pic.twitter.com/65XQeIVJth

— Peter McCormack🏴‍☠️ (@PeterMcCormack) August 14, 2023

Milei secured nearly 32% of the votes in the primary election, trailed closely by the conservative Together for Change party with just under 30%, and the left-wing Union for the Homeland coalition, the incumbent government’s group, with just over 28.5% of the vote.

Milei’s proposed economic plan represents a departure from the traditional policies pursued by Argentine politicians, with the potential to bring about significant changes in the nation’s economy. According to experts, as a pro-Bitcoin, anti-central bank libertarian, Milei’s election could have far-reaching implications for the domestic and international economic landscape.