Argentina is getting closer to having a president who is interested in Bitcoin, according to a politician who claims that soon the country is set to become a “Bitcoin haven.” Diana Mondino, an economist, professor at a university, and a former director of companies including Pampa Energia, Banco Supervielle, Loma Negra, and Bodegas Bianchi, made the claims.
According to Criptonoticias, Mondino is vying for a seat in Buenos Aires as a candidate for the La Libertad Avanza (Freedom Advances) party in the next general elections. Milei has also praised Bitcoin in the past, even though he thinks dollarization is the best way to deal with the country’s hyperinflation situation.
Primary elections won in Argentina
Millie is now in the lead in the primary election pools with 30.1% of the votes after 95% of the ballots have been tabulated. He is a member of the Freedom Advances political party. The candidate is well-known for his political stances in favour of a free market economy and the abolition of Argentina’s central bank. With 28.2% of the vote, Patricia Bulrich’s Together for Change is in second place, according to the results. Peronismo, the current political force in charge of the Argentine presidency, came in third.
Argentina’s Affair with Cryptocurrency
Argentina has a long history of having a complicated economic situation. The nation has one of the highest rates of inflation in both the world and Latin America. The overall level of the consumer price index showed a monthly increase of 6.0% in June 2023 and an overall variance of 50.7%, per the local government inflation index. The rise reached 115.6% when compared year over year.
The number of cryptocurrency owners has been rapidly increasing as a result of the inflation issue and the decline in confidence in the native currency, the Argentine Peso. Argentina is one of the top 10 nations with the greatest percentage of cryptocurrency owners in the world, according to Statista, with 26% of its population holding Bitcoin.
Banknote crisis and Cryptocurrency boom in Argentina
The nation’s inflation rate hit a record high of 7.7% in March, and the government has thus far refrained from printing currencies with bigger denominations. Before a significant election in the nation, there is a move to import additional banknotes. Bitcoin’s price versus the Argentine Peso (ARS) on April 25 hit a record high due to Argentina’s ongoing inflation. The exchange rate is currently around 6 million ARS despite a 9% adjustment, which is a substantial increase of more than 100% YTD. For some years, Argentina has struggled economically as a result of rising inflation rates and a mounting debt load.
Is Bitcoin a safe alternative?
Locals are looking to Bitcoin as a potential haven as the crisis worsens; on April 24, the black market cost for the US dollar reached 460 ARS, more than double the official rate of 220 ARS. In response, the nation’s central bank increased its rate by 300 basis points to 81% on April 20 and also halted access to dollars for some commercial transactions. According to a recent study, stablecoins are the cryptocurrency of choice for 50% of Argentinians, who are rapidly expressing interest in cryptocurrencies in general.
The National Commission of Value (CNV) has introduced a bitcoin-based futures index, demonstrating the rise in popularity of bitcoin. Accredited investors will be able to buy Bitcoin with settlements in pesos thanks to this product. Argentina is battling with legislation as the country works to establish laws and regulations for cryptocurrency businesses as well as proof-of-solvency procedures for exchanges and custodians. It is evident that Argentina is set to become a “Bitcoin haven.” Finally, a province in Argentina declared its plan to launch a stablecoin backed by the dollar in December 2022.
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