Fueling Crypto’s Path to Mainstream Adoption

• Javier Milei might have created one of the most controversial and rightly justified affirmations to date, spurring plenty of deep thinking.
• According to the new, freshly-elected president of Argentina, digital money, especially Bitcoin, is paving the way for money to return to the private sector, the original creator. 

To a few voters’ surprise, Javier Milei won a landslide election in the face of his fellow contender, Sergio Massa, this week. At almost 56% of votes favoring the new Argentine president, the political figure has often been compared to another pro-Bitcoin president, Nayib Bukele, of Argentina, who has already transformed Bitcoin into legal tender, representing the first nation to do so.

The newly elected president of Argentina has yet to craft a certain policy for the nation. Still, with all the positivity in his stance towards digital money, the country expects a similar undertaking soon enough. All the more since, according to the novel president, he wants to scrap the country’s peso once and for all and make the U.S. dollar the new currency of the nation.

If the president maintains his stance, the practice of checking the price of Bitcoin and Ethereum on places like Binance will gain traction, and the crypto industry will flourish in the country, potentially improving several financial aspects.

Milei’s victory, the U.S. stance, and inflation

Milei’s triumph is critical in the fight against the crisis experienced on the back of rising inflation rates, which led inflation to soar to 142.7%. Furthermore, the news and new political routes could symbolize the beginning of a new Bitcoin adoption stance, given the president’s timely endorsement of digital money as a tool to resend power into the hands of the private sector and reestablish financial control.

The Argentinian bank doesn’t serve nationals’ needs as decentralized money could according to the currently elected president, drawing plenty of opposing viewpoints. All of the latest movements and conclusions have spurred a lot of buzz in the global political landscape, drawing positive reactions from ex-U.S. President Trump and National Security Adviser Jake Sullivan from the White House, for instance. Besides an optimistic feel for the crypto market and the country’s financial situation overall, the U.S. could engage in some actions to improve the bilateral ties with Argentina, given the mutually shared democratic values.

Despite contrasting perspectives, CBDCs are generally disapproved of, with favoritism hinted toward crypto

Milei’s success wasn’t only met with positivism, as expected. Columbia’s president, for instance, Gustavo Petro, held a somewhat skeptical attitude, doubting the new agenda’s suitability for the current challenges and tribulations in Latin America.

On the other hand, Milei’s rival endorses the creation and adoption of CBDCs (central bank digital currency). According to him, this could smooth out the aftermath of inflation. But many other relevant opinions indicate otherwise, suggesting that CBDCs are actually another means for the government to seize more power from the private sector, gain more control over the financial system and users’ financial holdings, and leave less room for them to freely spend the accumulated wealth, possibly leaving them living from month to month.

Though opinions are split, as was expected, the fact that there’s a lot of support coming Bitcoin’s way suggests that, for the moment, some financial hurdles have better chances of being corrected compared to earlier days. Cryptocurrency is seen as a freer of the financial system’s current wobbles and a corrector of persistent inefficiencies.

Milei takes a different approach to crypto

The rather flamboyant president, whose supportive stance on cryptocurrency compared to the central bank’s involvement was frankly exhibited, has long made waves in the political-financial sphere, especially as many of the candidates for the presidency shared a somewhat intolerant perspective towards them.

Milei’s pro-bitcoin and pro-dollarization stance make quite a sense if one stands a second to realize that the country is well familiar with foreign currencies, whether under an unofficial or official regime. The country’s net currency reserves are in the red at the moment, with numbers standing at $4.5 billion to $7 billion. The country has difficulty meeting its external financial obligations as it lacks enough foreign currency assets to pay its current liabilities. Furthermore, according to restofworld.org, a global nonprofit publication, Argentines would gain 250,000 pesos per $1,000.

Digital money could be used freely, boosting adoption

There’s a general opinion formed according to which nationals will in the near future use Bitcoin and other cryptocurrencies as they please, as well as to their heart’s content. The current increasingly widespread endorsement of the crypto industry and assets’ broad utilization could trigger crypto prices to climb and Bitcoin trade mostly in green with time, should Milei remain loyal to its previously-formed opinion and act according to it.

The crypto market corrected its course after the elections, with Bitcoin taking the lead in terms of performance growth, similar to how it rose after Nayib Bukele’s presidential success.

Bitcoin and the whole crypto market witnessed a resurgence right after

Bitcoin hasn’t ended Q3 of the year on the positive note it finds itself today. Gradually rising from $25,000 to more than $37,000, it has seen long, consecutive days trading in green. On the back of Javier Milei’s triumph on Monday, it soared to this threshold and reached an 18-month high for the first time since May 2022. The overall crypto market additionally zoomed by 2% soon after and saw the prices consolidate their position despite Bitcoin losing strength by the week’s final stretch.

The crypto sector isn’t the only one to benefit from the elections

While all eyes are on the cryptocurrency sector, given the many proponents and investors involved, it’s equally relevant to take a second and look at the artificial intelligence (AI) market. The A.I. sector followed a similar course to Bitcoin and its peers, growing by more than 8% and seeing TAO grow by 4.2%, contributing to last week’s upsurge. Furthermore, OCEAN, AGIX, and FET expanded by as much as 16%, far exceeding Bitcoin’s performance. LDO zoomed by 11%, and NEAR climbed 20%, joining a cohort that indicates some green moves that are going to last for the whole week and well into the next one.

Nvidia has also exposed some positive results as if the latest upward trajectories weren’t enough to get convinced that the A.I. market is witnessing exponential growth.

The recent news is that Bitcoin and the whole crypto market will see more tolerance and adoption in Argentina if the pro-BTC president acts on his wishes. To date, there’s already rising positivism and optimism towards this matter from the crypto community, and the recent growth in Bitcoin’s price stands as proof.

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