Argentine President Javier Milei Signals Support for Provinces Launching Their Currencies

cryptonews.com:

Upon assuming office as the president of Argentina in December 2023, libertarian Javier Milei pledged not to oppose the implementation of national currencies by individual provinces. This statement follows a public exchange between Milei and Ricardo Quintela, the governor of La Rioja province.

In an interview with Radio Mitre on January 14, President Milei expressed that he would not legally challenge the creation of local currencies by provincial authorities. He believes that the market will determine the value of these projects but cautions that such “quasi-currencies” could lead to inflation, and those accepting them might fall victim to scams.

He warned that individuals receiving payments in “quasi-currencies” from what he termed “irresponsible governors” might experience a loss of income. Milei suggested that what is not taken from them through budgetary adjustments could be lost through inflation in these quasi-currencies.

President Milei’s statement comes in response to Governor Quintela’s intention to create a separate currency for La Rioja. This move comes in the context of his implementation of a 50% national currency devaluation to address the country’s significant inflation, which is currently at its highest level in 32 years. Additionally, provincial governments have received reduced funds from the federal budget under the new president’s administration.

Governor Quintela framed these measures as “abandonment by the nation” and emphasized the need to pay salaries to essential workers like policemen. He has requested that La Rioja’s legislature establish the legal framework for minting the local currency. This development follows a similar contemplation by the governor of Buenos Aires province, Axel