Argentine President Javier Milei’s crypto-friendly party, La Libertad Avanza, has won the country’s midterm elections, strengthening his hold on power before the 2027 presidential race. The victory gives a significant push to his free-market plans and his goal of integrating cryptocurrencies into Argentina’s economy.
According to local news outlet La Nacion, Milei’s party, La Libertad Avanza, secured 40.68% of the votes, surpassing the long-ruling Peronist party. This win is particularly notable as it includes the Buenos Aires province, historically a Peronist stronghold. The outcome solidifies Milei’s political base, empowering his ongoing pursuit of economic reforms designed to curb inflation and reduce state intervention.
“During the first two years, we avoided falling off the cliff,” Milei stated. “In the next two years, we will continue the reformist path to make Argentina great again.” These remarks signal a renewed confidence following a previous setback in September when his party lost the Buenos Aires provincial vote.
Milei's Economic and Crypto Initiatives
Javier Milei, a former economist, has gained prominence by advocating for free-market principles and the adoption of cryptocurrencies. His administration legalized Bitcoin (BTC) and other digital asset settlements in December 2023. Additionally, a recent $20 billion currency exchange between Argentina and the United States has bolstered economic relations and provided temporary stability to the peso.
Despite these advancements, Milei’s cryptocurrency policies have encountered challenges. In February, he was implicated in the controversial LIBRA token scandal. This token, launched by Kelsier Ventures CEO Hayden Davis, experienced a rapid surge to a $4.6 billion market capitalization after Milei mentioned it on X. However, it subsequently plummeted by 94% within hours. While Milei maintained he merely "spread the word" about the project, critics accused him of market manipulation.
Argentina’s corruption watchdog has cleared Milei of any wrongdoing, though investigations are ongoing. In October, prosecutors initiated a forensic examination of his phone and those of his key aides. Furthermore, a U.S. judge suggested that Milei and his associates might control assets linked to LIBRA, intensifying the scrutiny on his administration.
Global and Political Ramifications
U.S. President Donald Trump extended his congratulations to Milei on his electoral success, referring to him as “a wonderful leader” on Truth Social. The U.S. Treasury also confirmed a $20 billion bailout package contingent on Milei’s continued leadership.
Globally, analysts interpret Milei’s victory as a significant development for Latin America’s digital transformation. If Argentina successfully balances innovation with regulatory oversight, it could potentially establish itself as a prominent cryptocurrency hub within the region.
Milei’s midterm election win provides him with substantial political momentum. However, the manner in which he addresses the LIBRA scandal will significantly influence Argentina’s future trajectory in the cryptocurrency landscape.