The Bitcoin and crypto market is bracing for impact following the election of outspoken libertarian Javier Milei as Argentina’s next president. Milei has advocated for dollarization to combat hyperinflation and voiced support for Bitcoin as “the return of money to the private sector.”
His victory has sparked rampant speculation that Argentina could become the next country after El Salvador to adopt Bitcoin as legal tender. Samson Mow, CEO of Bitcoin tech company Jan3, hinted as much in a recent tweet, predicting another nation-state will be adopting Bitcoin “very soon.”
Bitcoin developer Jameson Lopp also questioned if Argentina is “the next domino to fall” in terms of Bitcoin adoption at a national level. The Bitcoin price jumped on the election news, marking its highest level since May 2022.
Milei has promised to “blow up” Argentina’s political establishment and central bank if elected. With the country facing catastrophic hyperinflation exceeding 100%, his proposals to dollarize the economy have tapped into widespread anger over the situation.
If Argentina pursues Bitcoin adoption alongside dollarization, it would be a major win for the crypto asset’s decentralization ethos. It could also supercharge investment inflows and spark similar moves by other developing economies struggling with inflation.
With Bitcoin’s next halving event just around the corner, Argentina adopting it as a legal tender could be a seismic shift for the market in 2023 and beyond. Crypto investors around the world will be following developments closely.
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