Bank

America

when

Elon Musk

Argentina’s president, Javier Milei, is turning the country’s battered economy on its head with straight up the boldest reform agendas in its history. 
After a year in office, Milei is following through on his promises to dismantle traditional systems, drastically cut taxes, and make Bitcoin a legitimate currency in Argentina by 2025. 
With a libertarian playbook in hand, the president has slashed 90% of national taxes, opened the door for states to set their own fiscal policies, and announced plans to legalize free currency use as part of his vision to fix decades of economic mismanagement. 
Milei’s reforms are controversial. He’s firing government workers, gutting public spending, and wiping out subsidies on essentials like transportation, food, and utilities. The results? Inflation has plummeted, poverty has skyrocketed, and Argentina is on the brink of an unprecedented financial experiment. 
<h3 id="span-style-font-weight-400-milei-s-tax-cuts-and-bitcoin-vision-span">Milei’s tax cuts and Bitcoin vision</h3> 
The proposed tax cuts plan to reduce 90% of the country’s national taxes, giving states the freedom to create their own tax systems. “Happy times are coming,” Milei declared during a recent address, promising “sustained growth” in 2025. 
As for the crypto connection, it was only a matter of time before he joined his new besties Elon Musk and US President Donald Trump. For a country with a history of hyperinflation and a currency—the peso—that no one trusts, the idea of ditching centralized money resonates with many. 
Global investors are paying attention. Bank of America <a href="https://www.nytimes.com/2024/12/12/world/americas/argentina-president-milei-inflation-economy.html" rel="nofollow noopener" target="_blank">praised</a> Milei’s stabilization efforts in a report, calling his policies “better than expected.” However, critics argue that the removal of subsidies and price controls is punishing the poorest Argentines while benefiting international markets. 
<h3 id="span-style-font-weight-400-economic-upheaval-cuts-chaos-and-cash-span">Economic upheaval: Cuts, chaos, and cash</h3> 
Milei’s economic strategy is brutal but effective in tackling Argentina’s inflation problem. Monthly inflation, which stood at 12.8% when he took office, is now down to 2.4%—the lowest in four years. 
His administration has achieved a budget surplus for the first time in 16 years, cutting government spending by a third and ending monetary issuance. The International Monetary Fund (IMF) predicts inflation will drop to 45% by 2025 from its 2023 high of 211%. 
But the cost of these victories is shocking. Over five million Argentines have been pushed into poverty since Milei took office, with the poverty rate climbing from 40% to 53% in just six months. Public outrage is growing. Milei’s austerity measures have brought on protests from students, retirees, and workers. 
University budgets are slashed, pension payments are shrinking, and subsidies on utilities have disappeared. The peso remains volatile despite government controls, and analysts warn that the lack of investment in public services could hurt Argentina’s long-term growth. 
<h3 id="span-style-font-weight-400-milei-s-global-allies-span">Milei’s global allies</h3> 
As aforementioned, Milei’s been busy forging alliances with some of the most powerful and intelligent people of our time, like Trump and Elon. 
Last month, Milei became the first world leader to meet President-elect Trump after his U.S. election victory. The two met at Trump’s Mar-a-Lago resort, where they hung out for hours. While speaking to reporters, Trump praised Milei’s efforts, calling them “incredible.” 
Milei often draws comparisons to Trump, not just for his policies but also for his brash style and unapologetic attacks on critics. He mocks “woke” culture, dismisses political opponents as “socialists,” and uses social media to amplify his libertarian agenda. 
“You’re my favorite president,” Trump told Milei on a late-night phone call. This is the bromance mainstream thought the US president had with Russia’s Vlad Putin. 
Elon, meanwhile, has actually been having dinners and sleepovers with Milei for months, as we’ve <a href="https://www.cryptopolitan.com/argentina-economy-crashing-milei-elon-musk/">reported</a> before. At one point, he said: “Javier has inspired us with his commitment to eliminating bureaucracy. Argentina is practically the last truly liberal country in the world.” 
At home, though, Milei’s populist style isn’t all that popular. His whole economic overhaul has divided Argentina. Supporters see him as a necessary disruptor who’s finally addressing decades of mismanagement. 
But for others, the sacrifices are too great. Poverty is rising, public services are deteriorating, and the social fabric of the country is under strain. 
Consumption of beef—a cultural staple in Argentina—is at its lowest level in 28 years, and many families are cutting back on basics like milk and bread. Despite the hardships, Milei’s approval ratings remain strong, with 56% of Argentines viewing him favorably. 
His libertarian ideals resonate with those frustrated by corruption and inefficiency in government. But the question remains: how much more can the country endure before the promised “happy times” arrive? One way or another though, looks like Bitcoin is now officially on the ride. 
<a href="https://www.cryptopolitan.com/crypto-career-launchpad-waitlist/?utm_source=cryptopolitan&amp;utm_medium=banner&amp;utm_campaign=ccl-waitlist-1" target="_blank">A Step-By-Step System</a> To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

Argentine President Javier Milei promises a Bitcoin-friendly economy and sweeping tax cuts

Table of Contents

Cryptopolitan_News

Other articles published on Dec 12, 2024

Crypto ETFs: Bitcoin and Ethereum Await SEC Approval in a Single Fund

Ultra Announces Bold New Leadership and Vision for the Future

Singapore Gulf Bank Plans $50M Fundraising for Stablecoin Payments Acquisition

XRP Price Prediction for December 12

Optimism (OP) and Lido DAO (LDO) Surges Following Launch Of Grayscale's Trust Fund

Best Altcoins: Qubetics Rises in Stage 12, Avalanche and XRP Surge

Join our free newsletter for daily crypto updates!