Argentina’s president Javier Milei touched down in Washington, D.C., on Thursday, arriving in the midst of the most important political firestorm of his presidency.
Javier’s go to—scheduled weeks upfront—was initially about securing an Worldwide Financial Fund (IMF) deal and strengthening ties with Donald Trump’s administration. However now, Javier is strolling into a special battle: explaining his involvement in a memecoin collapse that erased $4.6 billion in market worth in a single day.
Javier’s US itinerary is stacked. He’s set to fulfill Elon Musk, one in all his most vocal supporters and a detailed good friend, earlier than delivering a speech at CPAC—the Trump-friendly Conservative Political Motion Convention. His workforce has been scrambling to show the dialog away from the $LIBRA debacle and again to his financial agenda. However again in Argentina, the scandal isn’t going away.
$LIBRA token collapses after Javier’s promotion
The controversy exploded final Friday when Javier personally endorsed $LIBRA, a newly launched cryptocurrency, in a put up on X (previously Twitter). The token instantly surged, attracting speculators who noticed the Argentine president’s backing as a sign to purchase in.
However simply hours later, the value crashed, wiping out billions. Javier deleted the put up, and his workplace distanced itself from the mission, nevertheless it was already too late.
Then got here Hayden Davis, a key determine behind the token. Hayden informed buyers that Javier was extra concerned than he let on, claiming in leaked textual content messages—revealed by CoinDesk—that he paid Karina Javier, the president’s sister and closest advisor, to “management” Javier.
Davis denied that he had made any funds to the president or his sister, or despatched the messages. Milei denied any wrongdoing in a tv interview on Monday.
However the injury was carried out. The opposition pounced, accusing Javier of both incompetence or outright corruption.
Javier responded on Monday night time in an interview on Argentinian tv, saying he by no means acquired cash for the promotion and calling the accusations an try to smear his presidency. He didn’t make clear why he initially backed the token or why he deleted the put up, leaving extra questions than solutions.
Market response and the IMF talks in Washington
The fallout hit Argentina’s markets laborious. The Buenos Aires inventory index dropped 6% on Monday earlier than recovering barely. The nation’s already fragile peso took one other hit, including stress on Javier’s financial workforce.
Javier’s largest precedence in Washington is securing an IMF deal. His authorities has been in negotiations for months, making an attempt to unlock new funding and ease Argentina’s forex controls. Economic system Minister Luis Caputo stated on Monday that the settlement was “virtually carried out”, however sources near the talks recommend the IMF nonetheless has issues—notably about Javier’s dealing with of the peso’s change fee.
The IMF has pushed for a extra versatile forex coverage, however Javier’s workforce insists on controlling the speed to forestall inflation from spiraling additional.
Whereas Javier has been one in all Trump’s strongest allies on the worldwide stage, the US president’s new tariff plan may put Argentina in a tough place. Trump is pushing for reciprocal levies on nations that impose heavy duties on US items, and Argentina’s protectionist commerce insurance policies may make it a goal.
Javier is anticipated to lift issues in regards to the tariffs when he meets with prime US officers this week. His authorities has been making an attempt to align extra intently with Washington, however commerce coverage may pressure the connection—at the same time as Javier cultivates private ties with Trump’s interior circle.
Regardless of the scandal again house, Javier is about to obtain a heat welcome at CPAC. The conservative crowd embraces his free-market stance and aggressive anti-establishment rhetoric. Final yr, Javier’s speech on the identical occasion went viral amongst right-wing circles, and his workforce is betting on one other robust reception to assist drown out the crypto controversy.
Earlier than CPAC, Javier is scheduled to fulfill Elon Musk. Musk has been one in all his largest defenders, calling him a “true reformer” and backing his aggressive financial insurance policies. Their assembly is anticipated to deal with power, commerce, and digital property. Crypto will virtually actually come up—however whether or not Musk addresses the $LIBRA debacle stays to be seen.
The crypto group, in the meantime, has been divided over the scandal. One Argentinian X person posted:
“The principle factor I can say after $LIBRA incident is that I consider much more in Bitcoin and Ethereum than even earlier than and I’m certain Argentineans will play a vital function in world crypto adoption. We’re resilient as fuck.”
Ethereum created Vitalik Buterin reacted, saying:
“Argentina’s Ethereum group is filled with wonderful builders, who’ve already contributed among the most vital software program within the Ethereum ecosystem.”
He prompt that Argentina ought to host Devconnect, a serious Ethereum developer convention, citing the nation’s robust crypto expertise.
Javier responded publicly:
“THANK YOU VERY MUCH, Vitalik Buterin FOR YOUR WORDS ABOUT ARGENTINE TALENT!!! It might be an honor for Argentina to host Devconnect. LONG LIVE FREEDOM, DAMN IT…!!!”
