Upon assuming office as president of Argentina in December 2023, libertarian Javier Milei vowed not to oppose the state’s implementation of national currencies. The statement pertains to a public tirade between Milei and Ricardo Quintela, the governor of La Rioja province.
Milei confirmed in an interview with Radio Mitre on January 14 that he would not legally oppose the provincial governments of Argentina from establishing their currencies.
Ultimately, the politician believes that the market will determine the worth of such endeavors. Ms. Milei, on the other hand, thinks that “quasi-currencies” will exacerbate inflation and result in fraud for those who embrace them.
“Those who receive payments in quasi-currencies from irresponsible governors will clearly see a loss of their income […] What is not taken from them through budgetary adjustment will be taken from them via inflation in the quasi-currency.”
Ricardo Quintela, the governor of La Rioja, has declared his intention to establish a distinct currency for the province. In response, Milei issued the following warning.
This is due to Milei’s implementation of a 50% national currency devaluation to curb the country’s inflation, which is at its most significant level in 32 years. Provincial governments have also received a reduced amount of funds from the federal budget under the new president’s administration.
Quintela petitioned the legislature of La Rioja to establish the legal framework for minting the local currency, describing such actions as “the abandonment by the nation” and citing the need to pay for police uniforms as an excuse. Axel Kicillof, the governor of Buenos Aires province, also deliberated publicly on a domestic currency in December.
A local landlord and occupant in Rosario, the third most populous city in Argentina, have reached an agreement for the tenant to remit monthly rent payments in Bitcoin. Recent legal amendments enacted by the new presidential administration have rendered this agreement the first in Argentina.
