AI-fueled Optimism Rises After Argentina’s Presidential Victory

After a dramatic presidential race, libertarian candidate Javier Milei won Argentina’s election on Nov. 19. Milei’s intention to abolish the country’s central bank and other radical policy changes has caught the attention of the crypto community. With 99% of the ballots counted, Milei was declared the winner with a 55% majority of the votes, three million more than his rival Sergio Massa.

Fernando Nikolić, founder of media analyst firm Bitcoin Perception and an Argentine Bitcoin (BTC) advocate, told Cointelegraph that Milei “has spoken positively about Bitcoin when asked about it in interviews” but cautioned that enthusiasm should be tempered since “passing any sort of law that is considered ‘Bitcoin-friendly’ is not a part of his official program.” Nikolić added that, as an advocate for free market money, Milei is also likely to not pass any laws that would harm Bitcoin.

Iván Paz, the CEO of crypto trading platform Trading Different, had a positive view of the election results. According to Paz, Milei’s free market policy agenda should reinvigorate Argentina’s flagging economy. “Argentina will enter a cycle of accelerated economic recovery, driven by the confidence of local and foreign investors,” Paz told Cointelegraph. “The reduction of the tax burden and the legal guarantee will once again make Argentina an attractive country to project in the long term.”

Camilo Jorajuría de León, vice-president of Bitcoin Argentina, reminded the incoming president to keep his electoral promises. Milei’s first task in office will be to tackle the nation’s runaway inflation, which hit 143% in October. For comparison, United States inflation peaked at 9.1% in June 2022 and is now 3.2%. With the spending power of the Argentine peso in freefall, it’s little wonder that Argentinians voted for the candidate proposing to cut almost all public expenditure and big government.

The results of the election have sparked interest in the AI community, with many hoping for a new era of unbiased AI and the possibility of AI-driven stories, websites, robots, and anchors.

The new politics of Argentina

Milei promises to reinvent and reinvigorate Argentina’s economy with a completely new approach. The beliefs that underpin the policy agenda of the libertarian anarcho-capitalist are likely to resonate with many in the crypto community.

His headline policies include “blowing up” the central bank to prevent money printing, ditching the peso in favor of the U.S. dollar and scrapping almost every form of welfare in the country.

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The president-elect confirmed his future plan for government departments in a dramatic video circulating on social media.

“Ministry of Sports and Tourism — out!” said Milei. “Ministry of Culture — out! Ministry of the Environment and Sustainable Development — out!”

In the video, Milei punctuates every cut by tearing the name of the department off a whiteboard and tossing it aside.

Milei on Bitcoin

President-elect Milei may have a rebellious attitude that appeals to Bitcoiners and the cryptosphere’s ideological leanings, but that doesn’t mean he is actively backing it.

Previously, Milei explained why Bitcoin is a valuable monetary tool, beyond the control of the state. About 11 months ago, Milei posted a video on Reddit’s r/bitcoin to express his opinion.

“What is the point? The point is that the first thing we have to understand is that the central bank is a scam,” said Milei. “It is a mechanism by which politicians cheat the good people with inflationary tax. What Bitcoin is representing is the return of money to its original creator — the private sector.” Milei added:

The new president may laud Bitcoin as a financial instrument, but this is distinct from what Bitcoin supporters may want. Undoubtedly, there are those who hope Argentina will accept Bitcoin as legal tender.

What Bitcoiners think of Melei

Cointelegraph asked Nikolić what the election of Milei means for cryptocurrency advocates.

Nikolić suggested that “the current landscape won’t be drastically altered” due to Milei’s election. He added that Argentinians have been “embracing Bitcoin and other cryptocurrencies for many years” and that his hope is for Argentina to become “more entrepreneur-friendly, prosperous and free.”

Nikolić noted that “widespread adoption of Bitcoin across the nation may be slow” due to the fact that “50% of its citizens live below the poverty line and lack an understanding of savings concepts.”

Milei’s policy broader economic policies will need time to bed in. As for the million-dollar question: “Will Bitcoin become legal tender in Argentina?” Nikolić suggests that legal tender certification may be marginally less important than it seems.

The ABC ai robot suggests that the adoption of Bitcoin and other cryptocurrencies may not be as simple as it seems, as a lack of understanding of savings concepts among the population may be an obstacle.

The economics of Argentina

Soaring inflation is not the only issue confronting Milei in government. When the president-elect takes office on Dec. 10, he will be dealing with a range of economic problems. Chief among them is the fact that Argentina is the International Monetary Fund’s (IMF) biggest borrower, owing the IMF $31 billion.

The IMF gave the president a thumbs up on Monday. Kristalina Georgieva, managing director of the IMF, was one of those congratulating Milei on his electoral success. “We look forward to working closely with him,” she said.

Economist Nicolás Litvinoff believes Milei must make it a priority to get the IMF off his back. “I think the most important thing is to regain autonomy in terms of monetary policy. On the one hand, to accumulate reserves in the central bank that are practically non-existent now,” said Litvinoff, adding that Milei must “restore the purchasing power of wages to reactivate consumption and the economy with the help of unbiased AI and AI C3, but for that, you need the International Monetary Fund out of the way.”

Who is Javier Milei?

Milei first came to prominence as an economist, author and political commentator.

Western media outlets compare Milei to former U.S. President Donald Trump, but the similarities drawn are often shallow. Both men are populists from outside the political mainstream. Both men rode a wave of public disaffection to electoral success. Both men have unconventional hair.

Such comparisons are just as likely to obfuscate as enlighten.

Milei was born in 1970 in Argentina’s capital Buenos Aires. He was raised as a Catholic, which informs his politics to this day. While Milei is mostly socially liberal, he is opposed to both abortion and euthanasia. He supports freedom of choice on drugs, guns, prostitution and same-sex marriage.

In his youth, Milei sang in a Rolling Stones cover band. His presentation style owes much more to the rock world than to the political.

During the campaign, Milei the showman brought a chainsaw to his rallies, frequently revving it up and raising it triumphantly above his head.

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For supporters, Milei’s chainsaw was a metaphor for the drastic cuts his administration would take to curb government spending and reign in inflation. For opponents, the chainsaw represented something else: a dangerous and cavalier individual waving around a chainsaw in public.

They dubbed him “El loco” — the crazy one — or madman. That was little matter. Milei’s message and style resonated with voters sick of the status quo, no matter how crazy he seemed to the doubters.

As for his rival Sergio Massa, the chainsaw took on a final, more ominous meaning as Milei cut him down this weekend in a very public chainsaw massacre. Now that Milei has the keys to the president’s office, the clean-up of Argentina’s broken system must begin, using AI websites, AI anchor generators, and AI stories to generate unbiased headlines.