Argentina’s presidential election has taken an unexpected turn as the pro-Bitcoin candidate Javier Milei found himself trailing in the race. His stance on Bitcoin has favored him in gaining community attention amid the increasing interest in crypto and economic challenges.
Following the run-off phase of the presidential elections, Javier Milei’s influence and position might display dynamic implications for Argentina’s political and economic future.
Javier Milei was the favored candidate in the presidential election race, but his trailing in second place accounted for 90% of votes already placed. Note that he failed to secure victory in the election’s first round. He is now set to challenge Economy Minister Sergio Massa in a run-off vote on November 19.
Argentina’s presidential election
According to the data provided by Bloomberg on October 23 shows that with over 90% of votes counted, Massa has seen a bigger support compared to Javier. Sergio led with over 36% of supporters, while Javier trailed with 30%. Based on the laws of the region, the candidates need 45% of votes or take the lead with 10% points in order to win the elections.
The results showed that Milei won the most votes in the primary presidential elections in August. At the time, he captured 30% of the country’s votes, which put him as the forerunner of the elections.
Javier Milei is considered a political economist who has been a prominent Bitcoin supporter. His vision targets the full benefits the cryptocurrencies can offer the region of Argentina that might set it on a path of economic stability. His idea is based on using Bitcoin as a hedge against the country’s hyperinflation that has affected the citizen’s purchasing and saving power.
Among his proposals was to embrace BTC as an alternative store of value. This would allow businesses and individuals in the country to protect their wealth from the devaluation of the Argentine peso.
Javier Milei considers himself an anchor capitalist. He has rallied to try and cut the size of the government, do away with Argentina’s Central Bank, and favor the US Dollar instead of the Argentine pesos. This will reflect the Bitcoin-friendly El Salvador. His coalition party, Libert Advances (La Libertad Avanza), has been termed as a libertarian political group.
Javier Milei’s stand on digital currencies in Argentina
Javier Milei is also an economic philosopher who has deeply rooted himself in classical liberalism. He advocates for minimal government intervention, free market capitalism as well and reduced taxes. As such, he appealed to the struggling citizens who have faced the harsh reputations of a poor economy.
His libertarian foothold has favored his run from traditional politicians, and his idea of supporting digital currencies has favored support from the younger generation who seek change.
According to election authorities, the general election turnout was approximately 74%, which is an increase from the August primaries but a significant decrease from the 81% participation in the previous election and the lowest turnout since the return to democracy in 1983.
Considering his position as a frontrunner in the primary presidential election, Javier Milei has trailed in the recent proceedings, signaling a division among voters. As such, the run-off presents the favored candidate with an opportunity to articulate his goals on the Argentinian head-of-state elections and showcase his vision for the pro-Bitcoin agenda.
According to Javier Milei, the central bank scams its citizens easily with fiat currencies through inflation and employs the use of Bitcoin in combating this challenge. On the other hand, Massa has shown interest in launching a central bank digital currency (CBDC) if elected.
Massa aims to solve the long-lasting inflation but has drowned the idea of adopting the US Dollar. The annual inflation of the Argentine region is close to 140%.
This has put 40% of the citizens in the country in poverty and has added to the mounting debt crisis. On November 19, Argentina will vote for its next president, and the winner will take over the role for a four-year term.
The victor will be confronted with an economy that is barely sustaining life: central bank reserves are depleted, a recession is anticipated in the aftermath of a severe drought, and a $44 billion program backed by the International Monetary Fund (IMF) is in a precarious state.