Argentina’s economic genius president Javier Milei loves Bitcoin. What’s stopping him from making it legal tender?

Javier Milei has exploded onto the global stage as a libertarian icon. The President of Argentina, infamous for calling central banks “scams” and branding politicians “parasites,” is also Bitcoin’s loudest political fan, second only to El Salvador’s Nayib Bukele.

He sees Bitcoin as freedom—an untouchable, decentralized currency immune to the manipulations of the state. But for all his loud crypto preaching, Argentina isn’t waving a Bitcoin flag just yet. It’s not legal tender. The question is, why the hesitation?

Now Milei isn’t your typical president. He’s an economic anarchist. He’s also walking Argentina through some of its darkest financial days. Inflation hit 300% in 2023—imagine watching your currency rot in your wallet every second. So far, his strategy has been slashing state spending and screaming for dollarization.

He’s gambling big on old-school solutions while Bitcoin sits on the sidelines. Let’s break down why this crypto savior isn’t putting his favorite digital coin at the heart of Argentina’s economy just yet.

Why Milei is obsessed with dollarization

Milei has called the Argentine peso “excrement” on live television. His dream? Scrap the peso and use the U.S. dollar instead. Why? Because people don’t trust the peso. Heck, nobody trusts anything peso-related right now. Inflation has eaten the life out of the peso.

The value of the currency collapsed so badly that Argentines started turning to dollars and crypto just to survive, not even save or invest.

So, why not Bitcoin you ask? Well, that’s because dollarization offers immediate stability. The dollar isn’t volatile. It doesn’t lose half its value in two months. Bitcoin, however, is wild. Its price bounces like a drunken ping-pong ball, and Milei knows that kind of chaos could send Argentina straight to a collapse.

For all his Bitcoin love, Milei has made it clear that his short-term priority is stopping the economic bleeding. “The peso is dead,” he’s told anyone willing to listen. “The dollar is our lifeboat.” That’s the pitch. Bitcoin doesn’t fit into this emergency plan—not yet.

Why Bitcoin stays stuck in the shadows

Let’s talk about Argentina’s legal system. Milei might be the boss of Argentina, but his Congress is not on his side. His coalition holds less than 15% of the seats. That means passing any major reform is like asking lions to turn vegetarian.

His dollarization dream is already causing chaos in the halls of power. Adding Bitcoin as legal tender? Forget it. That would ignite a political war he doesn’t have the ammunition to win.

The regulatory situation isn’t helping either. Argentina’s Central Bank has been cracking down on crypto transactions for years. Milei might hate centralized power, but he’s still stuck in a system that’s ruled by bureaucratic hoops and cautious regulators.

Recent laws have even made it mandatory for crypto platforms to register with the government. It’s all red tape, and it’s clear that Bitcoin legalization isn’t anywhere near the top of the political to-do list.

Then there’s the problem of public opinion. Bitcoin might be popular in some circles, but it’s not exactly the national obsession.

The average Argentine is more concerned about putting food on the table than downloading a crypto wallet. And who can blame them? Milei’s already faced massive protests over his austerity cuts, with unions leading strikes across the country. Bringing Bitcoin into the mix right now could backfire spectacularly.

And let’s not forget infrastructure. To make Bitcoin work as legal tender, you need systems in place. Businesses have to be able to accept it. People need smartphones, internet access, and, most importantly, education about how Bitcoin works. Right now, Argentina doesn’t have that. It’s not even close.

Bitcoin’s advocates and Milei’s famous fans

If there’s one thing Milei loves, it’s talking about Bitcoin with other libertarian icons. His bromance with Elon Musk is public knowledge. The two met at Tesla’s Austin plant earlier this year, where they bonded over their shared hatred of bureaucracy.

Musk later tweeted about “actively” exploring investments in Argentina, praising Milei’s leadership. Meanwhile, tech entrepreneur Vivek Ramaswamy has been hyping Milei as a blueprint for U.S. government cuts. The two have even borrowed his style for their Department of Government Efficiency (D.O.G.E).

On the Lex Fridman podcast, Milei dished out advice to Musk and Ramaswamy: “Push it to the very limit. Do not give up. Just cut to the chase.” The three of them, along with Donald Trump, even met at Mar-a-Lago recently.