Milei Cleared Of All Suspicion In The Libra Crypto Case

The Argentine president recently walked the Vatican halls to meet Pope Leo XIV. A scene resembling a political confession, at a time when his country’s justice system acquitted him in a major crypto scandal. The man with sharp words seems, for a time, to have put an end to the threats weighing on his legitimacy. But can diplomatic salvation be enough to erase the volatility of the national ground?

Argentina: a crypto storm, an investigation closed

It all starts with a token: Libra, associated with a platform called “Viva La Libertad.” Its rapid rise, triggered by a viral campaign, precedes an equally brutal fall. At the center of the storm, Javier Milei, under pressure and accused of having exploited his fame to influence the markets.

But the Argentine Anti-Corruption Office ruled: no administrative fault. The analysis concludes that his actions fell within the private sphere. No state resources were mobilized. The investigation closes on this point. The executive breathes, for now.

There remain a bundle of judicial questions still under study. Particularly in the United States, financial authorities are examining the legal framework of the Libra project, suspected of bypassing traditional regulatory frameworks. In Argentina, the criminal case remains open. Investors, meanwhile, are trying to recover their losses.

In the collective mind, a contrast persists: the champion of monetary freedom seen in court for promoting an asset that vanished like a digital mirage.

Javier Milei facing the mirror of power

Fifteen months after his inauguration, Javier Milei has steered Argentina into an unprecedented turn. Fewer taxes, more cuts, deregulation all around. The major economic indicators are recovering, but the daily life of Argentinians remains under strain. Inflation is slowing, but poverty is gaining ground. Purchasing power is, itself, eroding silently on the shelves.

The president does not have a majority in Congress. His major structural reforms – pensions, education, justice – await October and the legislative elections. The Montaigne Institute notes that:

The projects are numerous, but their feasibility remains suspended on parliamentary arithmetic.

Moreover, the dollarization process, touted as the miracle solution, is at a standstill. The peso, battered, coexists as best it can with stablecoins. The recovery remains fragile, dependent on an electoral calendar and a precarious balance between austerity and legitimacy.

His audience at the Vatican comes at the right time. It softens his image, tempers his angles. In an atmosphere of social mistrust, every gesture of Javier Milei is scrutinized, every symbol amplified.

Crypto, disillusionment, and Argentine renewal

Argentinians’ relationship with cryptos is long-standing, fueled by distrust of banks, repeated crises, and monetary instability. In 2022, nearly 5 million citizens held digital assets. For many, it was a lifeline in a sea of financial turmoil.

But the Libra scandal has tarnished this trust bond. The episode revealed the vulnerability of an audience exposed to volatile and poorly regulated assets. The shock is deep, far beyond the fall of one token.

• 5.08 million Argentinians invested in cryptos in 2022;
• 36.5% of young adults use stablecoins daily;
• $250 million estimated losses after Libra’s fall;
• 300 economic reforms since Javier Milei’s election;
• +5 points of poverty recorded in one year.

The challenge today is twofold: restore trust and build a healthy ecosystem. Argentinians will not turn their backs on crypto but demand safeguards. Facing their president’s assumed hyper-liberalism, many now call for at least a minimum framework.

On June 7, the Argentine justice system lifted bank secrecy on Javier Milei’s accounts. A strong gesture. By a hair’s breadth, the head of state wavered. Removal seemed possible. Unless this imposed transparency once again serves to strengthen his position.

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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.