Economist Xavier Milli’s political rise for the presidency was largely inspired by the expectation of Argentina people that he could revive the country’s economic fate. But now the major credibility of Liberterian as an economic expert has suffered a big shock as the lawyers have filed a fraud case against him in the Argentina court.
What is known as the “Cryptogate” scam, holding Argentina, with the rapid growth and collapse of $ Libra cryptocurrency at the center of the controversy.
Most of the investors, the most reportedly, Argentina and the United States-Had put $ 100 million (€ 95.3 million) in short-term investment in cryptocurrency and lost most of their money.
Milei support backfined
Milei supported the $ Libra, which is a meme coin, the tweet was pinned to Milei’s account during the time in the social media post on 14 February, quickly increased in the price from $ 0.000001 to $ 5.20.
But Milli withdrew his support, after the allegations, the coin was a rug bridge scam, its price increased to $ 0.99 within hours. At its peak, the $ Libra market reached $ 4.6 billion, then fell $ 4.4 billion and left it at a price of only $ 162 million. The scam also has its own Wikipedia page.
The political opposition parties of Argentina now got but have accused thousands of small investors of encouraging them to invest money in a scam.
The case has both political and legal implications. Although it will be difficult to reduce direct legal responsibility from Mili, political loss has already been done.
Miley’s emergence from economist to president was created on his reputation for economic capacity. Hey deployed him as a person who explains the failures of the previous governments – but now, he faces his own crisis.
Faith in Miley government is fundamentally shaken?
Hernan Lature, director of Argentina’s Center for Economic Policy (CEPA), believes that the scam reduces Argentina’s interview abroad.
“This is a setback for the President’s economic credibility, his honesty and his position as a global reference point,” laurels told DW, saying that scams can result in financial markets and investment opportunities, Also can affect a recent agreement for financial. Support International Monetary Fund (IMF).
“To maintain its current economic model for the government, which has seen a rapid increase in exchange rate requires the influx of fresh money from the IMF,” said the laketer.
However, the problem is that the IMF is “unlikely to look preferred on the scam,” Especially knows that the global lender continued to advocate for strong cryptocurrency regulation.
Long -term impact on Milei’s popularity?
Agustin Etchebarne believes that the week scam that came out was real “very good week for Argentina.” But the economist of the Liberal Think Tank Fundsian Liberted Y Progresso separated the incident as a major misconception for the government.
“It was correct to accept that a mistake was made, that some things need to be cured, and that an inquiry is necessary,” Etchebarne told DW, saying that he is “long -term results for the economy Did not expect, “What is the current on what a positive.
However, Argentina’s media reacted strictly. daily newspaper ClarinFor example, the scandal is called “bullets that pierce the credibility and authority of the mill, which are both made on economic matters.” Paper said that it remains to be seen whether their “trust among the public and ability to generate expectations” is dent as the next election approach.
Another new paper, La nanianCriticized to deal with the government’s crisis, described it as a group of nervous officers, afraid of giving it a different opinion or advising Milli. For the newspaper, such behavior is “the worst partner for a political person,” Mili “as a least qualified officer to support private professional enterprises”.
Meanwhile, popular daily Pagna 12 Public opposition against Miley, who exploded in Plaza Day Meyo of Buenos Aires, where the protesters allegedly chant “Menos Libra, Mass Libbros” meaning “cum Libra, more books” – Miley budget in education Reference to deduction.
Miley banking on strong economy
To pursue the scam, the Milei government is not demanding momentum to its radical reform agenda to help push the economy forward.
The recent indicator feels that the country, in fact, may emerge from the years of financial and economic turmoil. In January, inflation fur 2.2% – the lowest rate since 2020 – while van was growing above the rate of inflation. In addition, Argentina has surpassed Columbia in oil production, which is a small but symbolic victory in the region.
So far, the people of Argentina have received a large extent that has supported economic policies, in which about 42% of the voters supported their Libertad Avnza Party, according to the most recent pol This pole was held.
This article was original in German.