Closing Central Bank is Non-negotiable says pro-bitcoin Argentina Pres Milei

[iBaba]

The newly elected Argentina president Javier Milei have come to the air to announce his decision to shut down the Central Bank of Argentina as one of his new moves as the president of the country. He made mention of this yesterday on his official statement he released on the office’s X social media handle.


This is the image here.

I have tried to translate it to English using Google online translation tool
“PRESS RELEASE
 City of Buenos Aires, November 24, 2023.-

“The Office of the President Elect of the Argentine Republic communicates that the only official information about the future government, headed by Javier Milei, is that published by this medium.

“In that sense, the economist Osvaldo Giordano will be the head of ANSES and the engineer Horacio Marín will be in charge of YPF as of December 10.

“Regarding the President-elect's agenda, this afternoon he will have a telephone conversation with the president of South Korea, Yoon Suk-yeol.

“On the other hand, given the false rumors spread, we wish to clarify that the closure of the Central Bank of the Argentine Republic (BCRA) is not a negotiable matter.”

From the reactions over the social to this humongous decision, a lot of bitcoin users have expressed gratitude and happiness over the decision including the first thread I highlighted here including this other forum thread whereas others have criticised his decision.

However, my question is, if he's going to be shutting down the central bank, what will be the instrument he will put in place of the bank or is he willing to establish a ‘Bitcoin Bank’ or what exactly?

[adaseb]

Well what is the point of the central bank now that their currency is useless. You keep the central bank and they issue new notes, most likely the same inflation problem will happen.

They are better off just using the US dollar or the Euro, and stay out of their own currencies. Many of their citizens stopped using their currency long ago as it was way too unstable.

[Oshosondy]

However, my question is, if he's going to be shutting down the central bank, what will be the instrument he will put in place of the bank or is he willing to establish a ‘Bitcoin Bank’ or what exactly?

Probably the country may be using a foreign currency, or have a fiat that uses the average prices of some strong foreign currencies. This is just a guess.

And later bitcoin may also be a legal tender in Argentina.

Well what is the point of the central bank now that their currency is useless. You keep the central bank and they issue new notes, most likely the same inflation problem will happen.

The central bank have function, but inflation is the indication of bad economy which their government is responsible for. They can tell their central bank not to inflate their currency and let their economy to collapse.

[adultcrypto]

I watched this man during their election campaign debate and he did not hide mouth about closing the central bank. This kept me wondering how he will go about it and if it is even possible. If yes, how will he regulate their monetary system and will the global financial system will allow it? I don't know if such a thing has happened before and how they managed their banking system.

I feel the man may go the way of El Salvador by legalising Bitcoing. Another option will be to adopt the use of foreign currency like the dollar, the same thing Zimbabwe did during their turmoil.  Well, let's keep fingers crossed and watch as events unfolds. I wish him good luck.

[pooya87]

Argentina and its economy is going to have dark years ahead with a crazy person as president. He will continue making horrible decisions and ruin the country for decades. I know in this forum people are only focusing on Bitcoin and this central bank thing but it is not just that, it is all his bigger and crazier moves such as cutting ties with the neighbors in South America and specifically BRICS.

This is what happens when non-politicians become politicians! He is basically Zelenski 2.0 who is set out to ruin the country.

[NotATether]

I'm a bit skeptical of this news, and am undecided as to whether him closing down Argentina's central bank is going to be a good thing or bad thing at the end of this.

Of course, he better replace it with something else, and quickly, because I don't think a government can function properly without a financial organ of its own.

[johnsaributua]

The central bank in a country is the reason for inflation in a country because its supply continues to be unstoppable, if using international currencies such as the euro might be better, even if there is an agenda to use Bitcoin as a means of payment, it is much better personally, and if the dump will be more measurable recovery, bitcoin in the joint movement is certainly more useful.
Changing the new President is certainly an adaptation, I agree that any country if led by someone who listens more to the aspirations of the people in parliament, of course the country will be systematic, even more establishing new relationships with other countries. Any action adds a correlation with the previous country. Currency can build a country as well as good and wise governance, who knows when. But we can see the characteristics of an improving economy from suppressing the reduced inflation rate, because to recover 0% from such a difficult condition and it takes time.

[KiaKia]

I hope he knows what he is doing, as this path he chose to walk on can be a very bad idea for the people in that country.

All those who are happy about this because it's Bitcoin related, I want to ask you a question, what is here to be happy about? Is the people in the country going to start using Bitcoin as their means of payment? I think its a no, so what?

I believe they will have to go with US dollars or something else, but I need you all to think about the repercussions than the advantages, is he doing this rightfully? It seems the answer is still a no for me, but only time will tell.

[Upgrade00]

This is what happens when non-politicians become politicians! He is basically Zelenski 2.0 who is set out to ruin the country.

I agree that some of the decisions he has made has been rash, looking like they were made for the shock effect of wanting to change things at the snap of the finger rather than having a long term goal in mind, but politicians have been failing for years unend now.

I don't think we should highlight the non-politicians who entered into leadership positions as an argument against it, we have had a truckload of politicians running economies to the ground and there are non-politicians who have done well in their time in charge.

[blckhawk]

Well what is the point of the central bank now that their currency is useless. You keep the central bank and they issue new notes, most likely the same inflation problem will happen.

They are better off just using the US dollar or the Euro, and stay out of their own currencies. Many of their citizens stopped using their currency long ago as it was way too unstable.

A bit off the mark, the inflation will not stay the same, it is going to get worse because that is how an uncontrolled inflation operates, the more your banks print paper money, the more you are going to devalue your currency. Definitely better off using USD or Euro but these solutions are temporary because they are not a US territory and they are not a part of the European Union so it is not the best fix. I do not know much about Milei but there is going to be a lot of things that he has to change and those change are going to be met with some resistance from those that have benefited from the old system. I hope that his friendly terms with bitcoin is accompanied by actions because if a lot of people thinks that bitcoin might be able to help Argentinians to combat the inflation, I guess that Milei using his position to create laws or policies that are bitcoin friendly is a must watch thing right now.

[EarnOnVictor]

-snip-
From the reactions over the social to this humongous decision, a lot of bitcoin users have expressed gratitude and happiness over the decision including the first thread I highlighted here including this other forum thread whereas others have criticised his decision.

However, my question is, if he's going to be shutting down the central bank, what will be the instrument he will put in place of the bank or is he willing to establish a ‘Bitcoin Bank’ or what exactly?

Had it been we are in April I would have said it's an "April fool" prank, nevertheless, I am not conversant with Argentina matters, and neither do I know their official sites and handles, however, if this is real, then this is an example of another idiocy in rulership.

This is why you don't just vote based on the richness and popularity of the contestants but vote based on good manifestos, antecedents and the wisdom coming out of the person. A whole central bank of a nation being pulled down? Or you guys didn't get the president's gist very well? He might mean he's shutting it for a while to overhaul/restructure it. Because it's so difficult for me to comprehend such as the work of the central bank is limitless when it comes to functions and interventions both at home and abroad. And for those Bitcoin lovers praising him, will he now use Bitcoin to settle international payments? I don't possibly know. I don't just know why folly follows some people around, they can't just think with their brains but with their legs.

Central bank is inevitable in every country, perhaps, the guy wants to call it a different name entirely but would still be saddled with the same functions and responsibilities. Time will tell on this as this idea is unimaginable to me, so gross, lame and ill-conceived.

[mk4]

However, my question is, if he's going to be shutting down the central bank, what will be the instrument he will put in place of the bank or is he willing to establish a ‘Bitcoin Bank’ or what exactly?

There's a difference between closing the central bank and closing banks in general — both are very different things.

As for whatever a 'bitcoin bank' is, I doubt it. They're likely to adapt the USD as I've read in some article on Twitter.

[Pmalek]

You can't rule anything out with this guy as a president, but I don't see him making bitcoin legal tender. More precisely, if he goes down that road, I don't see him making bitcoin the only legal tender. Argentina will probably use one of the world's reserve currencies for the time being and perhaps bitcoin will become a secondary asset adopted alongside. I have never been of the opinion that you should force people to use BTC. Making it the only legal tender does exactly that. It forces you to use it. It should be an option you switch to if you want and if you see value in it. That's the natural way to foster adoption.

[TimeTeller]

You can't rule anything out with this guy as a president, but I don't see him making bitcoin legal tender. More precisely, if he goes down that road, I don't see him making bitcoin the only legal tender. Argentina will probably use one of the world's reserve currencies for the time being and perhaps bitcoin will become a secondary asset adopted alongside. I have never been of the opinion that you should force people to use BTC. Making it the only legal tender does exactly that. It forces you to use it. It should be an option you switch to if you want and if you see value in it. That's the natural way to foster adoption.

I believe they will be using USD as their main currency for now. I don't think they will go for btc as their main.
But even if btc will be secondary in their options, I think, it will already add to adoption in their country.
We will see in the coming days how they will work around with their financial institutions and implement protocols towards the crypto market.
As of now, they are not banning nor making btc as legal tender, they are just open to this currency.

[Sim_card]

I hope that he has a currency in his mind that Argentina will fall to after he has closed down the central bank. Maybe he will be using USD, but isn't this change too quick. he shouldn't rush things but do them gradually with proper considerations before implementing it so that he doesn't make decisions that will lead to messing the economy of Argentina more. I hope to see which currency he will use to replace their fiat currency because I know that it can never be bitcoin because this will be impossible.

[hd49728]

Central banks can not control inflation of their fiat currencies but they are not only entities are responsible for a national economic. It is very naive to think that shutting down a current central bank will help to solve something big in the nation. Argentina as a nation and in the globalization world, will have to work, cooperate with other nations too.

They can not stay outside the common format of the world and of national central bank. It's non-negotiable, and I don't say it is a joke, but there will be many challenge to execute it as well as get acceptance from IMF. It can not be a measure from a single nation to wipe out all national debt, it won't be allowed.

[yhiaali3]

I do not think that the new president's decision to close the Argentine Central Bank is a right decision unless there is an alternative available and ready to replace all the services that the Central Bank was performing.

We are, of course, in favor of removing centralization and replacing it with Bitcoin and decentralization, but these steps must be well thought out and planned in advance, otherwise they could have disastrous consequences for the country’s economy and the proper functioning of the economic system as a whole.

I do not know what exactly the new president intends and whether he is thinking about replacing the central bank with Bitcoin, but it is his duty to think carefully about every step he takes and study the political and economic dimensions.

[so98nn]

Well on the horrifying fronts all the news articles over the internet correlating new president and Bitcoin relationship on whole new levels. Literally some of them are stating that Bitcoin rose by 3% just because Milei got his presidency. I’m not sure why are they relating it but one article also covers how he could be supercharging the country with crypto. Could be the reason why we discussing this today with Milei and his decisions to Break down the central banking system. If he is crazy enough to go like Ek Salvador then who knows he might just be the reason to take crypto seriously.

There are going to be only two things in the future: Either Argentina will actually become supercharged with crypto environment or it will end up in crushed economy.

[Kelward]

I'm a bit skeptical of this news, and am undecided as to whether him closing down Argentina's central bank is going to be a good thing or bad thing at the end of this.

Of course, he better replace it with something else, and quickly, because I don't think a government can function properly without a financial organ of its own.

You have my thought on this Argentinian new regime, I'm also wondering how the new president will fulfill his electoral promises. I don't know how a country can function financially without a central bank, if perhaps he's talking about a total overhaul of the financial system, that is understandable. So how does he run their financial system without a central body? Who will regulate the cash flow in the economy? I hope he has a full proof plan for this.

People in the crypto space are happy that he's a bitcoin enthusiast , that hopefully he'll make it a legal tender in Argentina. No doubt this will complete bitcoin adoption in that county, and if it works out well for their economy, other countries in similar situations can learn from them and also adopt bitcoin digital decentralized currency.

[DaveF]

I know it's been said here and several other places across the internet and probably in print too but this is more then likely going to be a disaster for Argentina.
The US central bank (Federal Reserve) is designed and setup to help the US. Not Argentina or any other country. You can't just go along for the ride. They FR can and will do things that are great for the US economy they can and will do things that may be not great for the US economy and everything in between.

How it will effect Argentina's economy is not important to them and if they do something that is good for the US but sinks Argentina into a decade of financial ruin. Then well it sucks to be them not our problem.

-Dave