Argentine President Javier Milei is facing calls for impeachment following his endorsement of the cryptocurrency $LIBRE, which suffered a major crash shortly after his public support. Opposition leaders argue that his promotion of the token led to financial losses for investors and caused international embarrassment for the country.
From Endorsement to Crash: What Happened?
The controversy began when Milei, a strong advocate for free-market policies and cryptocurrency, publicly praised $LIBRE on social media. His endorsement quickly drove up the token’s price, leading to a surge in investor interest.
However, within hours, $LIBRE's value plummeted, losing over 80% of its market worth. Reports suggest that early investors and insiders may have taken advantage of the price spike to sell off their holdings, leaving everyday traders with significant losses. The rapid collapse of the cryptocurrency has led to outrage, with many questioning Milei’s judgment in promoting an unverified digital asset.
Political Backlash and Impeachment Threats
Milei’s actions have sparked fierce criticism from opposition lawmakers, who claim the president acted irresponsibly and misled the public. The Union for the Homeland coalition has called for a formal investigation, with some members pushing for impeachment proceedings.
"A president cannot use his influence to promote financial speculation at the expense of ordinary Argentinians," said Sergio Massa, an opposition leader and former economy minister. "This reckless behavior has caused losses for investors and damaged Argentina’s reputation on the global stage."
Legal analysts argue that while there is no law explicitly preventing a president from endorsing a cryptocurrency, the ethical concerns are serious. The opposition is now demanding stricter regulations on government officials' involvement with financial products, especially in the rapidly growing cryptocurrency sector.
Milei’s Response and Retraction
As criticism mounted, Milei distanced himself from $LIBRE, claiming he had no prior knowledge of its financial structure before endorsing it. In a televised address, he admitted that he did not conduct a full review of the token before making his statement.
"I believed $LIBRE could be a valuable financial innovation, but I was not aware of its full details," Milei explained. "I regret any harm this may have caused investors."
Despite his retraction, the damage to his credibility has already been done. Critics argue that as the leader of a nation, Milei should exercise far greater caution before endorsing any financial asset, particularly one as volatile as cryptocurrency.
Impact on Argentina’s Crypto Future
Milei has been one of Latin America’s most pro-crypto leaders, often promoting Bitcoin and decentralized finance as solutions to Argentina’s long-standing economic crisis. His government has explored using digital assets to combat hyperinflation and peso devaluation.
However, the $LIBRE scandal has shaken public trust in the cryptocurrency sector, leading to calls for tighter regulations. Investors and financial analysts now warn that the fallout from this incident could slow Argentina’s progress in adopting crypto-friendly policies.
What Comes Next?
The impeachment process remains uncertain, but the political fallout is undeniable. While opposition leaders lack the numbers for immediate removal, they are using the controversy to weaken Milei’s political standing and credibility.
Meanwhile, angry investors who lost money in the $LIBRE crash are considering legal action, demanding accountability from both the token’s creators and the government. Regulatory agencies are also under pressure to prevent similar incidents in the future.
As Argentina navigates this latest political and financial crisis, the broader question remains: What role should world leaders play in the promotion of cryptocurrencies? This case could set a precedent, not only for Argentina but for governments worldwide, in handling the intersection of politics and digital finance.
Milei, a pro-crypto leader, publicly endorsed $LIBRE, sparking a price surge. His promotion fueled investor hype before the token’s sudden crash. [Image source: Shutterstock]
