Argentina's newly appointed President Milei has devalued the national currency, peso, by more than 50%, but has not yet turned his enthusiasm for Bitcoin into official policy.

According to CoinDesk, Argentina's new president Javier Milei recently decided to devalue the national currency peso by more than 50% and announced a reduction in spending. Milei has lowered the value of the peso from less than 400 pesos per dollar to 800 pesos per dollar, mainly to align the government's official valuation with that on private markets, where the trading value of pesos often exceeds 1000 pesos per dollar. However, despite his previous enthusiasm for Bitcoin, he did not translate this enthusiasm into official policy.

To reduce government expenditure, Milei's administration took a series of measures including not renewing contracts less than one year old, cutting subsidies for public transportation, electricity, natural gas and water and cancelling a year’s worth of government advertising. These measures have been praised by International Monetary Fund (IMF), with IMF President Kristalina Georgieva welcoming these "decisive actions" as an "important step towards restoring stability and rebuilding economic potential".

It is noteworthy that a year and half ago Argentina borrowed $45 billion from IMF under an additional condition that it takes steps “to prevent use of cryptocurrencies in order to avoid money laundering , informal economy and disintermediation”.