In an exchange on x, formerly known as twitter, Argentine President Javier Milei reiterated his support for bitcoin, emphasizing the freedom of monetary competition in the nation. This dialogue was sparked by an informal greeting from the president on the social media platform, which led to a conversation about btc.
Milei reiterates its support for bitcoin
President Milei’s tweet, “HELLO EVERYONE…!!!” received a funny response from Gabor Gurbacs, founder of PointsVille and Tether strategist, who responded: “bitcoin everyone. :)” Milei then x.com/gaborgurbacs/status/1803464138250764323″ target=”_blank” rel=”noopener nofollow”>Elaborated about his position regarding the use of cryptocurrencies, stating: “There will be free competition of currencies so if you want to use bitcoin there will be no problems… and you can also use other units such as WTI, BTU and whatever is most appropriate for your business… In accounting terms, it is resolved by the functional currency method.”
This statement underlines the Argentine government's approach to not only tolerate but also support the utilization of various currencies, including btc, within its economy. Gurbacs acknowledged this position and responded: “It makes sense. Free competition is good. Thank you President Milei!”
However, the discussion also highlighted concerns about the practical challenges involved in adopting bitcoin as a primary currency. One user expressed a major regulatory hurdle and commented: “Hi Javier! Please note this, we cannot use bitcoin as a currency if regulations require us to calculate capital gains on every transaction.”
Another criticism came from a user known as Caliber Culture, who lamented the president's approach for not being as singularly focused on bitcoin as that of El Salvador. He commented: “It is unfortunate that Milei does not follow the proven El Salvador playbook: bitcoin only. “It would speed up progress and protect against fraudulent currencies.” Gurbacs responded to this by reinforcing his opinion by saying: “Free competition is enough.”
In contrast, btc maximalist Max Keizer commented: “Allowing fraudulent currencies like eth etc. will slow down progress in Argentina. Milei will eventually realize this. “Most make this mistake before becoming btc maximalists.” The discussion also addressed the intrinsic properties of btc, highlighting the superiority over all other currencies: “But do you know that bitcoin is the hardest solid currency?”
But Argentina is not following El Salvador's manual
The past few weeks have seen a flurry of misleading information regarding Milei's stance on btc. Reports have been widespread inaccurately suggesting that Milei plans to adopt btc as Argentina's official currency, although they do not reflect its actual policy. The Milei administration has emphasized the dollarization of the Argentine economy and has not proposed the adoption of bitcoin as legal tender.
During a recent meeting with local regulators and the director of El Salvador's crypto Active division, discussions focused on self-custody rights and regulatory frameworks for cryptoassets. This meeting did not include plans for a bitcoin standard, but aimed to create a balanced regulatory environment for cryptocurrencies in line with the Financial Action Task Force (FATF) guidelines.
Argentina's approach involves strict regulations for Virtual Asset Service Providers (VASPs) to align with FATF guidelines, indicating careful, not total, integration of cryptocurrencies into the national economy. While Milei's comments on social media show a clear pro-btc stance, they are part of a broader policy framework advocating for economic freedom and regulatory prudence, not a pivot toward a bitcoin-dominated economy.
At the time of this publication, btc was trading at $65,297.
Featured image from Buenos Aires Times, chart from TradingView.com
