Javier Milei’s recent promotion of the Libra meme coin led to a significant scandal after he retracted his endorsement due to its volatile price movements. This incident has drawn public outrage and calls for impeachment, implicating key figures in his administration. Amid Argentina’s economic struggles with inflation, cryptocurrency is gaining popularity as a potential solution. Milei’s austerity measures are also raising concerns about rising unemployment and poverty.
On February 14, Javier Milei shared a link to the Libra meme coin project on X, highlighting its commitment to fostering economic growth in Argentina. Shortly thereafter, he deleted the tweet, stating he was unaware of the project’s specifics and could not endorse it after learning more. During that brief period, Libra’s value surged from mere cents to nearly $5 before plummeting back down, leading to calls from Milei’s opponents for his impeachment.
The controversy has implicated Milei’s sister, Karina Milei, who serves as his General Secretary and close advisor. Reports indicate that she initially engaged with a crypto consultant at the Casa Rosada, which facilitated Milei’s introduction to the Libra project. Despite the fallout, Milei asserts that he has not influenced investors or acted improperly, although many of his supporters incurred losses.
The Argentine peso continues to depreciate dramatically due to rampant inflation, compelling many citizens to convert their pesos into more stable currencies like the dollar. Consequently, Argentina has witnessed the highest cryptocurrency adoption rate in the Western Hemisphere, as indicated by Forbes. Economics professor Matías Vernengo emphasized the appeal of cryptocurrency in Argentina as a hedge against peso devaluation and a potential means for financial gain.
Milei, known for his unconventional political style, has been implementing measures to strengthen the central bank’s reserves while planning to alleviate currency controls by 2026. His austerity measures include significant workforce reductions, agency closures, subsidy cuts, and the freezing of wages and pensions below inflation. Despite a reduction in inflation and a narrowing gap between official and black market currency rates, unemployment and poverty have escalated under his administration.
As the scandal continues to develop, Milei has secured a victory in the Senate regarding the cancellation of this year’s primary elections in preparation for the upcoming midterm vote, despite his party holding only six seats out of seventy-two. He also attended the Conservative Political Action Conference, where he notably presented a chainsaw to the billionaire entrepreneur Elon Musk.
The events surrounding Javier Milei’s endorsement of the Libra meme coin have ignited a political scandal, with severe implications for his administration amid Argentina’s ongoing economic crisis. The fallout highlights the fragility of both the cryptocurrency market and the country’s financial stability. As Milei navigates these challenges, his austerity measures face scrutiny, and his political future remains uncertain, particularly in light of rising public discontent.
Original Source: gfmag.com
