The headline is stark: the US Treasury has just finalized a $20 billion currency swap arrangement with Argentina’s central bank. Bitcoin maximalists are not exactly impressed.
To stabilize Argentina’s wobbling economy, it has purchased Argentine pesos directly on the open market. This is no subtle gesture.
It’s a full-throttle effort to prop up a key ally at a critical moment. President Javier Milei, a Trump supporter, is battling volatile markets ahead of tense midterm elections.
The move raises a question that’s hard to shake. Why is the US buying pesos (an emblem of a fragile, inflation-hit currency) when it could be stacking Bitcoin instead?
The ultimate scarce asset and hedge against fiat collapse.
The Argentine Pesos Purchase: Not Just About Dollars
To understand why the US is buying Argentine pesos, zoom out from the pure financial calculus. Argentina is in crisis.
While there’s nothing newsworthy about that statement, its reserves are near depletion. The peso recently plummeted over 6% in a single day, and it has lost around 49% of its value relative to the US dollar in the last year.
Bond prices have also cratered, and there’s a real risk of systemic collapse that could rattle global markets.
Treasury Secretary Scott Bessent cast this move as “exceptional,” emphasizing that Argentina was facing a moment of “severe illiquidity.”
While the International Monetary Fund (IMF) stood behind Argentina’s fiscal strategy, only the US could act quickly enough to provide timely stability.
This intervention is about preventing a financial contagion and shoring up trust in Argentina’s dollar-denominated economy.
It comes at a time when China has been making inroads with yuan swap lines and mining partnerships in the region.
The $20 billion currency swap gives Argentina breathing space to access dollars without sparking a global dollar scramble or forcing the Federal Reserve to act domestically through rate cuts or balance sheet expansion.
How Much Bitcoin Could $20 Billion Buy?
Let’s talk numbers. The US Treasury’s $20 billion peso purchase is a sizeable lifeline, but in Bitcoin terms, it would translate into a different asset altogether.
As of early October 2025, Bitcoin was trading around $120,000 per coin. Using that price point, the same $20 billion could have purchased approximately 165,000 BTC.
That’s a massive stash of a finite asset that cannot be devalued or printed. And that’s the opposite of Argentine pesos, which are battling soaring inflation and currency volatility.
Joe Burnett, Director of Bitcoin Strategy at Semler Scientific, highlighted this contrast succinctly:
“The U.S. Treasury just bought $20 billion of Argentine pesos instead of buying $20 billion of Bitcoin (165,000 BTC). Maybe next year the U.S. Treasury can buy the same 165,000 BTC for $200 billion.”
The irony lies in watching government dollars shore up a crumbling fiat rather than futureproof scarce assets.
As Max Keiser simply put it:
“The U.S. should be buying Bitcoin with that money and Argentina should too.”
The Geopolitical Chessboard: EndGame Macro’s Take
This story won’t be complete without the geopolitical chessboard. EndGame Macro points out that Argentina isn’t just sitting on a currency crisis.
It’s one of the world’s richest repositories of lithium, copper, and rare earth minerals. These are essential for electric vehicles, semiconductors, and defense technologies.
By executing the currency swap and buying Argentine pesos, the US is quietly reasserting dollar dominance in a region where China’s influence has grown substantially.
Argentina has flirted with the yuan for trade settlements. Beijing’s yuan swap lines and mining partnerships have threatened to shift the balance.
This $20 billion lifeline anchors Argentina back into the Western financial orbit. This swap is also about resource leverage.
By keeping trade and financing dollar-based, the US secures strategic minerals flowing through Western channels rather than Beijing’s.
It’s less a bailout and more a multi-dimensional strategy encompassing financial stability, geopolitical influence, and resource security.
The Missed Bitcoin Opportunity
All this financial and strategic maneuvering leaves the obvious paradox. Countries with fragile local currencies like Argentina have seen citizen demand for Bitcoin rise as a hedge against inflation and capital controls.
Bitcoin offers transparent, hard money outside the political web and never risks devaluation the way national currencies do.
That’s why many see the Argentine pesos purchase as a missed opportunity. It’s basically a bet on the old, rather than the new decentralized frontier.
The US could have bought Bitcoin as a strategic reserve asset; instead, it chose to paper over the cracks in a failing system.