Argentine President Allows Provincial Currencies Circulate

Argentine President assured on January 14 that he wouldn’t legally oppose the creation of local currencies by provincial administrations.

After being sworn in as the president of Argentina in December 2023, Javier Milei, a libertarian, pledged not to obstruct the efforts of the states to create their currencies.

An argument that took place in public between Argentine president Milei and Ricardo Quintela, the governor of the province of La Rioja, is the subject of this statement.

During an interview that took place on January 14 with Radio Mitre, Argentine president Milei gave his word that he would not legally oppose the establishment of local currencies by the provincial administrations in Argentina.

“Those who receive payments in quasi-currencies from irresponsible governors will clearly see a loss of their income, What is not taken from them through budgetary adjustment will be taken from them via inflation in the quasi-currency.”

The politician believes that the outcome of the market will ultimately determine the value of undertakings of this nature. Argentine president Milei, on the other hand, believes that the “quasi-currencies” will cause inflation and that people who embrace them will be taken advantage of fraudulently.

Milei issued her warning in response to Ricardo Quintela, the governor of La Rioja, revealing his intention to establish a distinct currency for the province.

This is because Milei executed a devaluation of the national currency by fifty percent to bring the level of inflation in the country down, which was the greatest it had been in the past thirty-two years.

The new president has reduced the amount of money distributed from the federal budget to the provinces as part of his administration.

Quintela proposed that the legislature of La Rioja draft the legislative basis for minting the local currency. He referred to such measures as “the abandonment by the nation” and cited the necessity of paying salaries to police officers as the reason for his request.

Additionally, in December, Axel Kicillof, the governor of the province of Buenos Aires, stated publicly that he was considering the problem of the local currency.

In the meantime, a local landlord and tenant have finalized a leasing deal in Rosario, which is the third-most populous city in Argentina. The tenant will pay the monthly rent in bitcoin.

Recent revisions to the legislation, created by the current administration of the Argentine president, have made this contract the first of its kind in Argentina.