Will Milei Succeed Bukele as the Bitcoin Maximalist Leader?
A controversial Financial Times report claims that El Salvador’s President Nayib Bukele might scale back his Bitcoin policies in exchange for an IMF loan. This raises the question: who could be the next leader to champion El Salvador’s Bitcoin experiment?
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One potential candidate: Argentina’s dynamic and outspoken President Javier Milei.
On December 10, 2024, Milei completed his first year in office. During this time, his radical economic policies achieved remarkable outcomes: inflation dropped, government spending was significantly reduced, and the highly volatile Argentine peso (ARS) stabilized. These accomplishments have earned him praise from international organizations and financial institutions.
An equally notable, though less discussed, aspect of his leadership has been the transformation of Argentina’s cryptocurrency market. Hundreds of thousands of everyday citizens have started to engage with digital assets.
According to Chainalysis, the volume of digital transactions in Argentina from June 2023 to June 2024 reached $91.1 billion, surpassing Brazil’s $90.3 billion—a country long considered the most crypto-friendly jurisdiction in the region.
Argentina ranks first in Latin America for digital transaction volume. Source: сhainalysis
Related: A World of Crypto – The 2024 Geography of Crypto Report
Why Argentina Could Become Latin America’s Crypto Leader
It’s important to note that Milei has never identified as a staunch Bitcoin maximalist. However, as a committed libertarian, he has expressed a strong interest in blockchain technology and virtual currencies that operate independently of centralized, state-controlled systems.
Unsurprisingly, one of his campaign promises was to integrate digital assets into Argentina’s real economy. By May 2024, just six months into his presidency, Milei had already instructed officials from Argentina’s National Securities Commission (CNV) to meet with representatives from El Salvador’s National Digital Assets Commission (CNAD) to share experiences and insights.
For more details about this meeting, read our article, “Argentina Investigates El Salvador's Bitcoin Integration Strategy.”
Argentinians Flock to Crypto Amid Soaring Inflation
Argentina’s economic instability has driven citizens to explore alternative methods to protect their savings. By 2023, inflation had skyrocketed to nearly 200%, prompting many Argentinians to turn to cryptocurrencies.
The situation deteriorated further in December 2023 when President Milei announced a 50% devaluation of the peso. In response, citizens rapidly exchanged their devaluing fiat currency for dollar-pegged stablecoins, primarily USDT, in an effort to preserve their wealth.
Data from Bitso, a leading cryptocurrency exchange in Latin America, shows a clear correlation between the peso’s decline and a surge in cryptocurrency trading volumes. Every time the ARS lost value, interest in stablecoins spiked. For example, in July 2023, when the peso hit a historic low, monthly stablecoin trading volumes on Bitso exceeded $1 million. Following the December devaluation announcement, this figure surged more than tenfold.
In just a few days, Argentina became the regional leader in stablecoin transaction volumes. The country now accounts for 61.8% of global stablecoin transfers, far exceeding the global average. This growth is particularly evident in retail transactions, reflecting widespread adoption of stablecoins by everyday Argentinians.
Correlation Between Peso Depreciation and Stablecoin Trading Volumes on Bitso. Source: сhainalysis
What If Bitcoin Were Recognized as a National Currency?
Javier Milei is not a politician who operates on a “ban and block” principle. Instead, he embraces the philosophy that if a revolution cannot be stopped, it must be led. The rapid growth of interest in cryptocurrencies in Argentina prompted him to consider institutionalizing the movement to gain a degree of control over it.
On December 20, 2023, President Milei signed a law legalizing the use of cryptocurrencies as a payment method for official contracts, including payments for goods (primarily grains and livestock) and real estate rentals. The law states that citizens have the freedom to determine the amounts and types of currency used for collateral or security deposits.
A week later, Congress passed a law allowing Argentinians to legalize their crypto holdings without providing documentation to explain their origins. To comply, individuals only need to pay a fixed tax of 5% on the declared amount and submit the relevant declaration.
This crypto legislation forms part of a broader economic deregulation package. The reforms eliminate all government subsidies and grants, ban strikes in sectors such as healthcare, transportation, and internet services, and introduce significant changes to labor laws.
A bold and radical policy has opened new doors for Argentina's crypto market. Explaining the rationale behind this decision, Javier Milei stated, “The state has become a machine that hinders economic growth,” and he plans to counteract this by dismantling the Central Bank as an institution, with cryptocurrencies playing a key role in this strategy.
While the Central Bank still holds its ground, for over a year, Argentine entrepreneurs have favored conducting long-term transactions not in the national currency but in stablecoins or BTC.
This shift offers them greater flexibility and protects their savings from inflation, which, though reduced, still stands at a staggering 143%.This policy benefits everyone—from everyday Argentinians to major crypto exchanges operating in the country. According to Pedro Gutierrez, General Manager of CoinEx’s Latin American branch, the government’s approach has created a favorable environment for the growth of the local virtual currency market, attracting more crypto companies to participate in this unconventional experiment.
Javier Milei advocates for individual freedom. Source: CNN
It’s natural to question the feasibility of such an ambitious social experiment within a single country, especially considering El Salvador’s struggles to establish Bitcoin as a legal means of payment.
However, it’s worth noting that Javier Milei is a staunch proponent of anarcho-capitalism, a professor at the Chicago School of Business, and a Nobel laureate in economics. Given his impressive credentials, his initiatives deserve serious consideration.
In contrast, El Salvador’s President Nayib Bukele, while a skilled politician and marketer, did not complete his higher education—he was expelled from Central American University for academic underperformance.
With that perspective, let’s wish Javier Milei success in his bold endeavor to make cryptocurrency a foundation of Argentina’s national economy.
Related: Crypto Regulations in Argentina
Header photo source: X @JMilei
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