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Argentina opposition calls for impeachment of Javier Milei after cryptocurrency collapse (www.theguardian.com)

submitted 4 days ago by Powderhorn to c/news

12 comments fedilink hide all child comments

It's almost like crypto is in general a scam.

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[–] chicken@lemmy.dbzer0.com 6 points 4 days ago (1 children)

Cryptocurrency has exploded in Argentina in recent years, as disillusioned savers sought to keep their money outside traditional banks amid a decades-long economic crisis and soaring inflation rates.

Kind of makes sense if the people in charge of running their official currency are this corrupt as to be doing blatant pump and dumps on Twitter

[–] Powderhorn 2 points 4 days ago* (last edited 4 days ago) (1 children)

When's the last time Argentina had a stable currency? Outside of it being pegged to the U.S. dollar.

[–] chicken@lemmy.dbzer0.com 2 points 3 days ago* (last edited 3 days ago) (1 children)

Not sure, the article links to another article about the recent state of Argentina's economy and currency though, which seems to be saying among other things that its stability became worse in 2023, which was closely followed by spikes in cryptocurrency adoption:

I'm not 100% on all that though since I can't read Spanish

[–] jarfil 1 points 3 days ago (1 children)

I can't read Spanish

Google Translated into English

The USD/ARS exchange rate has been going badly along inflation for the last 20 years.

[–] chicken@lemmy.dbzer0.com 1 points 3 days ago (1 children)

Yeah I mean I did read the translated version, but translations are imperfect. Looks like this confirms that there is a recent spike though

[–] jarfil 2 points 3 days ago* (last edited 3 days ago) (1 children)

Yes, there is a spike... and Milei has masked the most recent one with a devaluation by decree

2023: 211% inflation
2024: 117% inflation / 54% by decree = 216% effective

Argentina has a serious case of stagflation, with public spending slashed, international investors capped in their ROI, and a poverty level going back to 2005 numbers.

[–] Powderhorn 1 points 3 days ago (1 children)

I'm generally not a fan of dollar pegs, but refloating the peso led to all sorts of problems. This is of course IMF related, but that might start getting a bit too wonky.

[–] jarfil 1 points 3 days ago

To be fair, I haven't been following Argentina too closely. Still, remembered how during the campaign, he promised to "reduce inflation to 150% and devalue by 50%"... which was like "what? so 300%?". Not sure how they managed to close the year at 117% (and 54%), in October it was at 193% (and 54%). I haven't checked the full "inflation & devaluation" series.