Javier Milei Under Fire After Promoting Libra Cryptocurrency
Argentine President Javier Milei has come under fire after publicly recommending investing in the Libra cryptocurrency, which quickly became a financial disaster for many investors. The opposition, including former President Cristina Kirchner, accuses Milei of market manipulation and announces a motion to impeach him.
The Cryptocurrency That Rised and Fell in a Few Hours
It all started on Friday, February 14, when Milei posted a post on his X platform promoting a private project supporting the development of the Argentine economy. The post included a link to the Libra cryptocurrency website and an assurance that "the world wants to invest in Argentina."
The market reacted immediately – the price of Libra, which had previously been practically non-existent in circulation, rose to almost $ 5, and the market capitalization reached an impressive $ 4.5 billion. Unfortunately, after just three hours, the token's value plummeted to a few cents, causing huge financial losses among investors who trusted the president's recommendation.
In response to this scandal, Javier Milei deleted his post, claiming that he was not aware of the details of the project and had no ties to the creators of Libra. However, his explanations did not convince the public or political opponents.
Did the president have ties to the creator of Libra?
According to information disclosed by Bloomberg, in January this year, Milei met with Hayden Davis, the creator of Libra, at the presidential palace in Buenos Aires. Davis himself claims that the Argentine president was perfectly aware of what Libra was and consciously supported the project in order to gain political support among cryptocurrency supporters.
Meanwhile, the Argentine Anti-Corruption Bureau has set up a special investigative group to investigate whether there was abuse of power or market manipulation. The opposition is demanding full transparency regarding Milei's contacts with the creators of Libra and is suggesting that the president may have financially benefited from promoting the token.
Political consequences of the scandal
Although the cryptocurrency scandal has hit Milei's image, the president still enjoys high public support at 47%, which is higher than the opposition's results. His political strength stems mainly from his successes in fighting inflation and increasing wages, which have earned him recognition among voters.
However, dark clouds are gathering over Milei. Cristina Kirchner and her allies are openly talking about impeachment, emphasizing that the president has lost public trust and acted to the detriment of citizens. In the coming weeks, the Argentine parliament may become the arena of a stormy political battle that will decide Milei's future.
What next?
Despite the crisis, the president does not intend to retreat. He will soon head to Washington, D.C., where he will meet with Donald Trump to discuss IMF funding and customs policy. His political future depends on whether he can convince the public that he was not involved in the cryptocurrency scam.
Will the cryptocurrency scandal weaken Mileia's power, or will it be just another political storm that will survive? Time will tell.
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