Argentina President Milei Devalues Peso, Receives IMF Praise but No Bitcoin Policy in Sight

Last updated: December 23, 2023 23:30 EST
. 2 min read

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Argentina flag and bitcoin — Source: Alexey Novikov / Adobe

Argentina’s newly elected libertarian president, Javier Milei, has devalued the nation’s currency, the peso, by over 50% and received praise from the International Monetary Fund (IMF) for his plans to restore Argentina’s economy.

However, despite Milei’s previous statements expressing enthusiasm for Bitcoin (BTC), he has not yet translated this into an official government policy.

Still, there are signs that could indicate that Milei is pro-Bitcoin, including comments from earlier this year when he said about Bitcoin that it represents “the return of money to its original creator, the private sector.”

Additionally, small hints that the president has a pro-Bitcoin stance are continuing to emerge online, with one example being a picture of Argentina’s Minister of Economy with laser eyes being reposted by Milei on X.

Laser eyes is in Bitcoin circles a symbol of Bitcoin maximalism and bullishness on the number one digital asset.

Translated to English, the post quoted the minister as saying: “My task as Minister of Economy is for people to have more and more purchasing power, we do not want officials to continue lying to people with nominal value.”

🚨🇦🇷 | Excelente entrevista de Caputo en TN:

“Mi tarea como Ministro de Economía es que la gente tenga cada vez mayor poder adquisitivo, no queremos que los funcionarios les sigan mintiendo a la gente con la nominalidad.” pic.twitter.com/XmD1nuVDch

— Milei SheIby (@TommyShelby_30) December 14, 2023

Another recent example was a post from a Milei fan account pointing out that both Milei and Bitcoin creator Satoshi Nakamoto are trending on X, which was also reposted by Milei:

Wow, Milei and Satoshi trending together… what a team!https://t.co/Hdezu8vUbh pic.twitter.com/cwL3yOXA2N

— Milei Explains (@Milei_Explains) December 13, 2023

It’s worth noting that the IMF last year imposed stipulations discouraging the use of crypto in Argentina when it lent out $45 billion to the country.

Peso devaluation and dollarization

The devaluation of the peso, now valued at 800 per US dollar from less than 400, aligns the official valuation with private markets, where the peso often traded at over 1,000 to the dollar.

Notably, the Milei administration has not yet lifted the capital controls imposed by the previous government, maintaining the official rate at around 400.

Milei’s long-term plan is to get rid of the peso altogether, and instead dollarize the economy.

At the same time, Milei’s efforts to reduce spending include not renewing contracts of less than a year, reducing subsidies for public services, and canceling government advertising for a year.

The measures have earned praise from the International Monetary Fund (IMF), with Managing Director Kristalina Georgieva commending the “decisive measures” as crucial for restoring stability and rebuilding the country’s economic potential.

I welcome the decisive measures announced by President @JMilei and his economic team today to address 🇦🇷 Argentina’s significant economic challenges—an important step toward restoring stability and rebuilding the country’s economic potential.https://t.co/1zZRES9anE

— Kristalina Georgieva (@KGeorgieva) December 12, 2023