Crypto dollar: the ecosystem in “optimistic mode” with the triumph of Milei

Crypto dollar: the ecosystem in “optimistic mode” with the triumph of Milei
November 29, 2023 – 2:48 p.m.

From the Argentine crypto sector, expectations of progress in the sector remain rising with the arrival of Milei to Casa Rosada, however, they are also aware of the risks that this implies.

Crypto Trend

The triumph of Javier Milei in the presidential elections is raising great uncertainty about the future of the country’s economy. However the crypto sector shows optimism in relation to the expectations of exchange rate stability that, in principle, his government project would entail.

According to a report prepared by Balancedigital money exchange platform, among the STEP and the general elections There was a 47% increase in interest in the electronic and crypto dollar; while between the PASO and the runoff it was 35%, reflecting a slowdown in the growing trend. Likewise, he warns that volatility reached a 16% in the PASO, 35% in the general elections and 28% in the runoff.

In that sense, Pablo ReyesCEO of Saldoar, explains: “The data show that the elections in Argentina generate uncertainty and that uncertainty generates volatility. In addition, these figures were boosted by arbitrage (or curling), that is, by the investment strategy that is based on taking advantage the exchange gap between the official dollar and the crypto dollar and through which it was possible to take advantage of the retention that the Government carried out with the dollar card“.

The crypto ecosystem in “optimistic mode”

In relation to the expectations of the sector, Reyes assures that it is expected that “andThe new president improves commercial predictability“and, in that sense, he asserts that it has been observed that Sergio Massa’s victory in the first round generated higher levels of volatility in the markets.

Regarding Javier Milei’s platform of proposals, Reyes states: “I view Milei’s proposals to eliminate restrictions on foreign trade and regulations on the financial sector. However, I am also aware of the challenges and risks involved in carrying out these measures effectively, without generating more debt, inflation or crisis; taking into account that, from a business point of view, from theory to practice and with so many people involved, the journey is long and difficult, but not impossible to achieve.

In summary, the crypto sector views Milei’s triumph with optimism, since its government project could generate greater exchange stability and, therefore, a more conducive environment for the development of cryptocurrencies. However, they are also aware of the challenges and risks involved in carrying out these measures, so they are waiting to see how they will be implemented in practice.

Source: Ambito

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