By Sama Marwan,
Argentine liberal president Javier Milei faced harsh criticism from the opposition in his country after promoting a digital currency called “Dollar Libra” on his personal account on the “X” platform, just minutes after it started trading. The promotion of this currency sparked widespread controversy in Argentina.
The cryptocurrency skyrocketed to over $4 before crashing and falling to less than 50 cents.
The Argentine newspaper La Clarín reported that the president promoted the digital currency, attracting cryptocurrency investors, which led to a price surge due to increasing demand. However, investors quickly withdrew their money from trading.
The newspaper also noted that political opponents in Argentina have filed dozens of lawsuits against President Milei.
Milei’s office responded to the news, stating that the president had met twice with representatives of the companies launching the currency but was “not involved in any stage” of its release. His post about the currency was part of his “daily” promotion of Argentine companies.
The office added that the president had requested the executive branch of the Anti-Corruption Office to conduct investigations to determine whether he or any other government entity had committed any wrongdoing.
Analysts criticized the Argentine president’s move. Milei, a former economist with a pro-private sector stance, managed to curb the country’s soaring inflation rates through a strict austerity program. He also forged high-level alliances with leaders of tech companies in Argentina and the United States.
Marcelo Garcia, Director of Americas Affairs at the consulting firm Horizon Engage, commented: “This will fuel existing doubts about the government’s political competence and increase concerns that spontaneous mistakes could harm the reform program.”
On Monday, Argentine stock market prices fell by more than 5%, while the peso dropped 2% against the dollar in the main parallel trading market.
