Milei Pushes Free Currency Circulation

Argentine President Javier Milei has outlined key policy initiatives for 2025, emphasizing free currency circulation and pro-crypto regulation. 

The new policies under consideration would allow Argentines to conduct transactions in any currency they prefer, including Bitcoin, driving financial freedom and flexibility across the nation.

Argentina Bitcoin Policies to Follow El Salvador’s Approach

Milei also announced a sweeping tax reform aimed at reducing 90% of national taxes. This plan seeks to alleviate financial pressure on citizens and empower individual states to establish their own taxation systems, promoting localized economic decision-making.

“For a year now, there has been talk of free circulation, but it’s not true that there is real free competition between fiat currencies and Bitcoin. When you trade with dollars or euros, exchange rate differences with the peso are not subject to income tax, whereas with Bitcoin, they are. This significantly increases costs, deters and complicates the use of Bitcoin as a currency,” Ricardo Mihura, President of the ONG Bitcoin Argentina, told BeInCrypto. 

In June 2024, Milei strongly advocated for Bitcoin adoption and unrestricted currency competition in Argentina. While his vision echoed El Salvador’s early embrace of Bitcoin, it remained tailored to Argentina’s unique economic landscape. 

Despite criticism, Milei continues to champion cryptocurrency as a vital tool for economic transformation. Argentina has already made strides in integrating crypto into its financial framework. In 2023, the government legalized contracts in Bitcoin. 

With Milei’s leadership and his commitment to fintech freedom, cryptocurrencies could become more prominent in Argentina’s economy.

“I personally welcome the reduction of the State’s role in the economy. However, in the crypto economy, Government’s direct and indirect burden has increased and seems poised to continue growing. Regulations, agencies, and administrative obligations are being imposed solely to deepen the illusion of control that Bitcoin was designed to challenge,” Ricardo Mihura, President of the ONG Bitcoin Argentina, told BeInCrypto. 

South America’s Crypto Momentum

Argentina’s focus on cryptocurrency reflects broader adoption trends across South America. In Brazil, the Central Bank has partnered with Chainlink and Microsoft to develop DREX, a trade-focused central bank digital currency (CBDC). 

Also, Brazil leads in crypto ETF adoption, launching the first Solana ETF and BlackRock’s Ethereum ETF on the B3 stock exchange earlier this year.

Meanwhile, Venezuela has experienced significant growth in its cryptocurrency market. As BeInCrypto reported earlier, the market surged by 110% year-over-year in Q2 2024, reaching $11.7 billion. 

This growth coincided with a rise in the value of the US dollar, positioning Venezuela as one of Latin America’s fastest-expanding crypto markets.

The rising momentum in South America reflects the region’s potential to become a global leader in cryptocurrency adoption. Argentina is playing a pivotal role in the region under Milei’s forward-looking policies.