In that sense, Financial Timesthe means of United Kingdom, He did not stay outside and questioned the actions of the Argentine president, describing what happened. In that sense, he pointed out that the situation is, for many, ” greater crisis in its administration“
The media also signed that “In the medium and long term this will stain the president’s credibility”according to what some experts expressed.
What happened to the Token promoted by Javier Milei
The president published a message promoting a cryptocurrency called $ libra, an unusual action for a head of state and that aroused doubts among users. After the announcement, the cryptocurrency experienced an initial fury, reaching a peak of US $ 4,978, and then collapsed au $ 0,99159 dollars in a few hours.
“Liberal Argentina continues to grow !!! This private project aims to promote the development of the Argentine economy, financing small businesses and local enterprises. The world wants to invest in Argentina”was Milei’s message on his X account.
The publication was also replicated in its Instagram stories and contained a link to the website vivalibertadproject.com. In the site it is mentioned that “The living project La Libertad is to promote the Argentine economy through the financing of small projects and local companies, supporting those who seek to grow their businesses and contribute to the development of the country.”
What does Financial Times say
The libertarian president of Argentina, Javier Milei, has been shaken by a scandal for his promotion of a memecoin whose value shot before collapsing, which triggered impeachment orders and demands.
On Friday night, Milei promoted a cryptocurrency called $ Libra in X, which had begun to quote minutes before. Its value fiddled quickly above US $ 4 before falling below US $ 0.50.
Buyers accused the creators of the currency of a possible scheme of “Rug Pull”, where the initial investors of the cryptocurrency attract others to inflate their price before quickly withdrawing their funds.
Political opponents have presented dozens of demands accusing Milei of ethical violations, while the main Peronist opposition block said it would initiate an impeachment process and accused him of “participation in cryptographic fraud.”
In a television interview on Monday, Milei said that the scandal, which according to analysts is the biggest crisis in their administration since he assumed the position in December 2023, is a “slap on her face.”
“I am a techno-optimist … and this was proposed as an instrument to help finance Argentine projects,” he said. “It is true that when trying to help those Argentines, I received a slap on my face.”
Milei’s office said the president had met twice with representatives of the companies involved in the creation of the currency, but “it was not involved at any time” in its development.
Javier Milei crypto capture.jpg
TV capture
The president had asked the Anti -Corruption Office of the Executive Power to investigate whether he or any government actor had committed an irregularity, he added.
“The most interesting lesson is that … I need to put more filters, it can’t be so easy for people to get to me,” said Milei in the interview.
The analysts said that the episode ran the risk of undermining the confidence in Milei, an execonomist of the private sector that has controlled the inflationary crisis of Argentina through a wide austerity program and has forged high profile alliances with technological leaders from Argentina and the United States .
“In the medium and long term this will stain the president’s credibility, (although) it has been an error (honest), since he boasts of his skills as an economist,” said Marcelo García, director for the Americas of the consultant Horizon engagement.
“For foreign investors this will feed the doubts that already existed on the political capacity of the government and will fear that uninforced errors can endanger their reform program,” he said.
The Argentine stock market fell more than 5% on Monday, while the peso lost 2% against the dollar in a crucial parallel exchange market.
Few Argentines were economically affected by the fall of the currency, and the country’s Fintech chamber said that the analysis of X publications suggested that most of the $ Libra buyers were in the United States and Asia. They added that the currency had never been included in the exchanges used by the “vast majority” of Argentine cryptocurrency users.
It seems unlikely that Milei’s opponents obtain the two -thirds majority in Congress to dismiss the Head of State, since the centrist blocks say they would not support the proposal.
The right -wing party, an ally of the emerging coalition La Libertad advances from Milei, said that the episode was “serious” because it involved “the credibility of the country … and the president’s environment”, but accused the leftist leaders of “Opportunism politician ”when asking for their dismissal.
But analysts said that investigations on the president could, however, weigh on their approval rates, which have been around 50% during the last year, while Argentina prepares for the October legislative elections.
Juan Cruz Díaz, General Director of the Cefeida Group, a consulting firm of Buenos Aires, said that the scandal threatens to weaken the negotiating position of the minority government in Congress, where he is trying to approve a bill of electoral reform.
“It is the first important crisis facing the government,” he said. “It has maneuvering margin, but it will be crucial how it manages the situation in the next few days and weeks.”
Source: Ambito
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