What Happened to Javier Milei's Crypto Ambitions?

Upon his election in November 2023, Argentine President Javier Milei, a self-described anarcho-capitalist, signaled a strong pro-crypto stance, viewing digital assets like Bitcoin as a potential solution to Argentina's rampant inflation and a means to enhance financial freedom. His initial rhetoric fueled speculation about Argentina potentially adopting Bitcoin as legal tender, similar to El Salvador, though his primary economic focus remained on dollarization and currency competition.

Early legislative actions reflected this ambition. In December 2023, Milei's government legalized the use of Bitcoin and other cryptocurrencies in private contracts, a move aimed at formalizing digital asset transactions. Concurrently, a bill was proposed to introduce an 'asset regularization scheme' or tax amnesty program, allowing citizens to declare previously undeclared crypto holdings. By January 2024, proposed crypto taxes were removed from a broader reform package to expedite its approval, indicating a desire to avoid legislative hurdles for crypto-friendly policies. March 2024 saw the enactment of Law 27,739, establishing a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs) and mandating registration with the National Securities Commission (CNV) for businesses exceeding certain monthly transaction volumes. Further regulations in July 2024 required citizens to declare digital asset holdings, aiming for greater financial transparency.

A significant turning point, however, came in February 2025 with the '$LIBRA' meme coin scandal. On February 14, 2025, Milei publicly promoted the $LIBRA token on his social media platforms, claiming it would boost the Argentine economy. Following his endorsement, the token's value surged dramatically before crashing within hours, leading to allegations of a 'rug pull' scam and an estimated $251 million in losses for investors. This incident, dubbed 'Cryptogate,' triggered widespread outrage, fraud investigations, and calls for Milei's impeachment, significantly tarnishing crypto's reputation in Argentina and causing a dip in his approval ratings.

Despite the scandal, Milei's party secured a commanding victory in the October 2025 midterm legislative elections, tripling its congressional seats, which was seen by supporters as a mandate for his reformist agenda. Concurrently, by December 2025, reports emerged that Argentina's central bank (BCRA) was drafting new rules to allow commercial banks to offer crypto trading and custody services, a major reversal of a 2022 ban, with these regulations anticipated to take effect by April 2026. This move is largely driven by Argentina's high grassroots crypto adoption, with stablecoins being widely used to hedge against inflation.

As of April 2026, the '$LIBRA' scandal continues to cast a shadow. New evidence, including phone logs and draft financial agreements, has emerged, deepening scrutiny into Milei's alleged involvement and a possible $5 million deal tied to the token's promotion. While the central bank is moving forward with plans to integrate crypto into the formal banking system by April 2026, the scandal has reportedly slowed the overall pace of regulatory integration. Furthermore, Milei has acknowledged that his broader dollarization plans have stalled due to a lack of public adoption, indicating a more complex path for his vision of currency competition. Argentina's Securities and Exchange Commission (CNV) also recently recognized cryptocurrencies as part of an individual's net worth for qualified investor status, further integrating digital assets into the financial system.