Crypto

TLDR

  • Argentina has elected a pro-Bitcoin (BTC) candidate, Javier Milei, in its Presidential elections, and El Salvador’s president Nayib Bukele (the first president to adopt BTC as a legal tender) has already extended DeFi help. 
  • Market analysts and economists polled by Argentina’s central bank raised their annual inflation forecast to 185%. Also, El Salvador’s inflation rate has been on a downward trend.
  • Crypto investors ponder whether Argentina will follow El Salvador’s footsteps and adopt BTC as a legal tender.

It would appear that presidents in the LATAM economic region have become consumed with adopting Bitcoin. El Salvador’s president, Nayib Bukele, allowed the country’s Bitcoin team to travel to Argentina in order to assist the incoming president, Javier Milei, in comprehending the significance of decentralized finance.

El Salvador to show Argentina how Bitcoin adoption is done

Argentina’s presidential elections resulted in the victory of Javier Milei, a candidate who supported Bitcoin (BTC). Elon Musk, a tech magnate, and Michael Saylor, among other crypto enthusiasts, congratulated Milei on his triumph. Argentina now shares the distinction of being led by a pro-BTC president, following in the footsteps of El Salvador.

Max Keiser, the Bitcoin (BTC) counsel to El Salvador’s President Nayib Bukele, has disclosed that a team will travel to Argentina to consult with the new president on BTC initiatives. The team will, according to Keiser, extend an invitation to the newly elected President to ‘dine at the Presidential Palace here in El Salvador and talk about Bitcoin.‘

Max Keiser disclosed in a subsequent post on X that President Nayib Bukele had authorized Team Bitcoin El Salvador to visit Argentina on a Bitcoin diplomatic mission of peace and economic freedom. El Salvador has previously adopted Bitcoin as a legal tender to combat inflation and to liberate its people from the control of central banks. Latin America is the first region where Bitcoin adoption will begin on a national basis. Argentina’s new President, Javier Milei, openly criticized the country’s central bank, calling it a “scam” and a “mechanism through which politicians deceive the public with inflationary taxes.” He also considers Bitcoin to be a movement aimed at “restoring money to its original creator, the private sector.”
financial

Will Argentina adopt BTC as a legal tender?

Although Milei is pro-BTC, there is no certainty of the cryptocurrency’s future position in the country. It should be noted that Argentina is currently experiencing a financial crisis. Argentinians chose Milei over the country’s finance minister, Sergio Massa. Citizens are most likely dissatisfied with the economy’s management.

Last week, economists polled by Argentina’s central bank raised their annual inflation forecast to 185%. The increase is a 4.3% increase over last month’s prediction of 180.7%. The country is dealing with one of the world’s worst cases of inflation. 

Annual inflation was 142.7% in October, up 8.3% from the previous month. While inflation in other nations is gradually declining, Argentina continues to suffer.

El Salvador’s inflation rate has been on a downward trend, reaching 2.66% in October 2023, marking the tenth consecutive monthly decline. Over the past 62 years, El Salvador’s inflation rates have ranged from -2.7% to 31.9%, with a calculated inflation rate of 7.2% in 2022 

South America is experiencing one of its worst economic seasons. Venezuela, which has significantly higher levels of inflation than Argentina and El Salvador, sought to develop its own crypto asset in the past. However, Venezuela’s crypto initiative, known as the Petro, was largely centralized, operated very differently than Bitcoin, and failed to achieve its goals.

After Argentina chose Javier Milei as the country’s next President, Bitcoin’s price rose 3% and surpassed $37,000. Bitcoin’s current price is $ 37,404.96 per (BTC / USD), with a market capitalization of $731.21B. The 24-hour trading volume is $ 20.73B. Bitcoin has gained 0.54% in the last 24 hours and has a circulating supply of 19.55M.

According to Bloomberg data, Milei collected over 55% of the votes, with about 99% of the votes counted, establishing a significant lead of nearly 3 million votes.

Satoshi Money BTC points out Milei’s triumph will spark a surge towards $40,000. Following the large event, trading volume increased, indicating that BTC prices will continue to rise.

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