The presidential candidate Javier Milei, who once threatened to blow up the country's central bank, was officially elected as the President of Argentina today. "The Argentine people have chosen another path," said Javier Milei, as his opponent Massa announced his retirement from frontline politics after losing the election.

On November 19th, in the second round of elections, Javier Milei won 55.7% of the votes, while Massa won 44.2% of the votes. After defeating this final opponent, Javier Milei will be inaugurated as president on December 10th. "Today, the reconstruction of Argentina begins. This is a historic night for Argentina," Javier Milei told jubilant supporters at his campaign headquarters in Buenos Aires.

During the campaign, Javier Milei's campaign promises repeatedly included the abolition of the central bank and the peso, and the use of the US dollar as the legal tender to overcome the inflation disaster facing Argentina. This disaster has plunged 40% of Argentina's 45 million citizens into poverty and pushed the inflation rate to over 140%.

Under his vision, after the closure of the country's central bank, Bitcoin will also become the main force as a remedy for Argentina's inflation. Before the presidential election, Javier Milei frequently appeared on various talk shows, often promoting the benefits of Bitcoin and cryptocurrency. "Bitcoin can eliminate central banks," said Javier Milei.

Due to the election of Javier Milei, Bitcoin has surged and broken through $37,000, with a current price of $37,356 and a 24-hour increase of 2.3%.

Austrian School of Argentine President

"I know how to eliminate the cancer of inflation," announced Javier Milei during the last presidential debate on Sunday.

According to Javier Milei, the establishment of the central bank in 1935 was the beginning of all problems in Argentina. Without a central bank, Argentina was the wealthiest country in the world, with an average annual inflation rate of only 0.9% from 1880 to 1935. The establishment of the central bank in 1935 fooled everyone: the average inflation rate jumped to 6% per year. In 1946, the central bank was nationalized, and the average inflation rate was 250% per year until 1991. This was a complete disaster.

Javier Milei, an economist and economic analyst, supports the economic thought of the Austrian School and is a staunch advocate of laissez-faire capitalism. He calls himself a "short-term anarchist" and a "long-term anarchist capitalist".

In the field of blockchain, the Austrian School is not a strange concept. The founder of the Austrian School believed that "money is not an invention of the state". Currently, Hayek's "Denationalization of Money" is a must-read book for the Austrian School in the industry, which clearly expresses the need for a complete separation of government and monetary systems. The views expressed in the book were considered shocking in 1974, but the emergence of Bitcoin in 2009 made it seem less crazy and even a great prophecy. Many people even believe that it was this book that helped inspire Satoshi Nakamoto, who himself is highly likely to be a libertarian based on the Austrian School.

Related reading: "Will Argentina become the next El Salvador, exposing 45 million people to Bitcoin?"

Xiong Yue is one of the early Bitcoin evangelists in China and a senior researcher in Austrian economics. He pays close attention to Javier Milei's campaign: "In fact, he is my senior brother. Search for Mileiy Huerta de Soto on YouTube and you will know. Javier Milei is greatly influenced by De Soto, and he also writes articles in commemoration of De Soto's collection of works, which is very Austrian."

Argentineans have chosen a new path

"Due to the current situation, we are temporarily unable to display prices on the shelves. Please inquire about prices at the checkout counter. All cash promotions are suspended until further notice. Thank you for your understanding." This is a notice posted outside a small market in Argentina, which fully reflects the chaos in the Argentine economy in recent years.

Nathan is a journalist who, in early April of this year, returned to the capital of Argentina after a 10-year absence and experienced this firsthand. Like everyone else, Nathan's first task upon arrival was to exchange currency, but the exchange rate in this location varies greatly depending on the method and location of obtaining pesos.

The official exchange rate is 1 USD to 220 pesos. Nathan went to several Western Union offices to exchange currency, but was told that there was no cash available. With the help of a local friend, he found a "cuevas" or black market on a certain street, where the exchange rate was close to 400 pesos.

But Nathan faced a second major problem, because the largest denomination of banknotes currently available is 1000 pesos, worth less than $2.04. The exchanged paper currency piles up in his wallet and pockets, and carrying a backpack full of pesos for daily expenses and outings is very conspicuous and makes people nervous.

It's hard to imagine that Argentina, which was once among the top ten economies in the world in terms of total output in the early 20th century. In recent years, due to factors such as the international economic and financial situation and the epidemic, Argentina's own economic growth has not only slowed significantly, but the inflation rate has also reached 100%, and the value of the peso has depreciated sharply, making it the weakest currency in the world this year. Bank of America pessimistically predicts that the official exchange rate of the peso will fall to 545 by the end of this year and to 1193 by the end of next year.

Therefore, in the midst of a complex economic situation in the country, Argentina's presidential election is seen by many as the best solution to make significant changes to the country's economy. Javier Milei's unconventional stance has resonated with many, especially young voters who are knowledgeable about the internet and technology.

Bitcoin Argentina spokesperson Zocaro believes that Argentina has been experiencing a growth trend in the use of cryptocurrencies since around 2020, with many people starting to buy Bitcoin and stablecoins. More and more people are using cryptocurrencies to send funds to family and friends abroad or to purchase goods from overseas, as international restrictions make it increasingly difficult to do so using traditional methods. For Argentinians who may only be able to afford bread in the evening after spending their money on bacon in the morning, cryptocurrencies provide a way to protect their value.

Unlike the mysterious "cuevas," Zocaro said, "Cryptocurrencies are completely legal in Argentina, and people are beginning to notice the inflation of the US dollar and see Bitcoin as a possible alternative. Most young Argentines prefer Bitcoin, Ethereum, and stablecoins. Some provinces in Mendoza have taken measures to allow people to pay taxes with cryptocurrencies."

According to a survey conducted by Americas Market Intelligence in April 2022, nearly 51% of Argentine consumers have purchased it. This proportion is higher than the data from a similar survey conducted at the end of 2021, which was only about 12%. The survey also found that as many as 27% of Argentine consumers regularly purchase cryptocurrencies, with the main reasons for purchasing being investment, inflation protection, and avoiding government control.

Although many older Argentines still prefer to hold US dollars in cash, more and more young people and residents are starting to prefer USD stablecoins. "They don't need to deal with cash and can complete transactions through their phones," said a platform that provides cryptocurrency trading for Argentine users. Two-thirds of Argentine users are under the age of 35.

Javier Milei's comments on introducing the US dollar as the official currency of the country have received applause from supporters, and many economists are discussing Argentina's financial crisis.

Regardless of everything, in a country where the annual inflation rate exceeds 140% and two-fifths of the population live in poverty, Javier Milei's victory proves that Argentinians are tired of traditional politics and economic disasters. The people of Argentina are willing to try new things and have chosen a new path.

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