[NEWS] Bitcoin nears record high in Argentina after Milley wins presidential election

On the 19th, Argentina's Javier Milley was elected as the next president. In response, the price of Bitcoin (BTC) temporarily soared.

Grayscale, a major cryptocurrency management company, released a report on the impact of the Argentine presidential election on the cryptocurrency market on the 20th. According to the report, the price of Bitcoin (BTC) denominated in the peso, Argentina's legal currency, is approaching its all-time high. According to CoinMarketCap, the price of Bitcoin (BTC) denominated in the peso reached a new high on the 16th of this month.

Advocates for Bitcoin and the abolition of the central bank

Milley is an economist and is known as an outsider who gained popularity by radically criticizing successive governments on television programs and other media. Voters had been venting their dissatisfaction with the two existing major parties, claiming that they could not solve the long-standing economic turmoil, but this led to Milley's dramatic victory.

In the presidential election, the biggest issue was how to escape the economic difficulties that have continued since the 2001 debt crisis. In Argentina, the peso has fallen due to the US interest rate hike and agricultural production has dropped significantly due to record drought, and severe inflation continues. Inflation in October was 142% higher than the same month last year, exceeding 100% for the ninth consecutive month. 40% of the population is poor.

Millay has declared the central bank to be the "main cause" of economic instability. He is also known to be a supporter of Bitcoin. He advocates crypto assets such as Bitcoin as an alternative to fiat currency. He seems to think that Bitcoin is equivalent to cash and can be used as a tool to prevent inflation.

Millay's support for Bitcoin is linked to his economic beliefs and Argentina's financial difficulties, including hyperinflation of consumer prices and a 117% drop in the peso against the dollar compared to the previous year.

As a leader of the Austrian school of economics, Millay considers himself an anarcho-capitalist. He says that his views resonate deeply with some of the Argentine people, such as voters who participate in protests against the existing government and crypto enthusiasts.

Cryptocurrency demand grows in hyperinflation countries

In countries like Argentina where hyperinflation is a problem, cryptocurrency could be a unique place to modernize monetary policy.

Argentina has endured the world's highest inflation rate for several years, which has eroded public confidence in the peso and has now sparked discussions for a stable alternative currency.

Millay's economic policy aims to radically restructure and reduce government intervention. His vision is to adopt Bitcoin as a supersovereign currency that provides a decentralized, inflation-resistant store of value beyond the country's monetary policy.

Grayscale explains that it "considers this a meaningful step forward in adopting cryptocurrency" as Bitcoin approaches the day when it will become a supersovereign means of exchange that will accelerate an accessible and inclusive monetary system.

Reference:Report
Image: Shutterstock

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