President-elect Javier Milei is not backtracking from his campaign promise of shutting down Argentina’s central bank. The outspoken personality said it was a “non-negotiable matter” on a post via X platform.
The incoming head of state’s comments came as an answer to “false rumors” being floated around as he races to assemble a new Cabinet before his assumption to office on December 10. Standing true to the sweeping changes he pledged to Argentinians, Milei’s party revealed the streamlining of government ministries under the new regime.
Reports say the libertarian administration will only have eight ministries to slash government spending. Among the mentioned casualties will be the health and labor ministries, which will be combined under a new agency led by Mauricio Macri as labor secretary.
Meanwhile, either Osvaldo Giordano or Carolina Piparo will be taking over the country’s social security administration ANSES — another institution vital to government expenditure cuts. Other appointments announced include Horacio Marin as chief of state-owned oil company YPF and Mariano Cuneo Libarona as justice minister.
As of this writing, Milei is yet to disclose his economic minister, who will get the post vacated by his presidential rival, Sergio Massa. The president-elect stated he will only announce it when he takes office so that Massa’s allies would not “torpedo” his appointee.
Milei delegated the selection of security and defense ministers to Vice President-elect Victoria Villaruel, who happens to be his running mate, too.
What Happens Now?
The central bank’s axing will give way to the US dollar’s adoption as Argentina’s de facto currency. Milei’s decision came after the peso inflated by 143% annually, with forecasts claiming it would further climb to 210% by year end. The incoming president earlier vowed to end central bank’s run, calling it a “scam” and a political tool used “to cheat people with inflationary tax” in interviews.
What About Bitcoin?
One of Milei’s aces was his advocacy towards greater Bitcoin (BTC) adoption. Previously, he said the digital asset “represents the return of money to its original creator, the private sector.” For him, BTC “prevents politicians from robbing you through inflation.”
Because of these, there have been speculations that Milei might follow El Salvador’s approval of Bitcoin as legal tender and reserve asset. However, a new video surfaced during the weekend wherein he is now questioning the efficiency of Bitcoin and other cryptos as a reserve asset, citing the intangibility of the digital assets as well as volatility as potential issues.
End Notes
Campaign promises are just that… Promises. Now, Javier Milei will have to contend with the reality that some of his earlier stances may be too revolutionary and risky when applied to the present setting. His quick change of tune on Bitcoin just shows that he is choosing the safest path to jumpstart his country’s economy after years of failure in its fiscal and monetary policies.