Milei and $Libra: Understand the cryptocurrency scandal that even brought down the Argentine stock market

In recent days, a cryptocurrency – $Libra – has been at the center of a scandal in Argentina involving President Javier Milei.

With the usual volatility of the crypto market, in a few days the currency soared in price and soon after melted more than US$$ 4 billion, causing impacts on the country's stock market and motivating a probable impeachment request for Milei by the opposition – since the president helped promote the asset.

Understand how it all started and what the impacts – current and future – of the scandal involving $Libra are.

What is the $Libra cryptocurrency?

The cryptocurrency, launched on the Solana blockchain, is said to be ‘a project designed to encourage the growth of the Argentine economy’, financing small businesses and local enterprises.

One of its creators is Hayden Mark Davis, who has already described the asset as an ‘experiment’ that did not go as planned.

Davis is an entrepreneur and financial technology consultant, known for his involvement in the world of cryptocurrencies and his connections with conservative political figures in the United States, including Donald Trump.

What Javier Milei did and what are the suspicions

The president of Argentina made a post on X, formerly Twitter, promoting the project, saying that the cryptocurrency was ‘a private project’ aimed at ‘stimulating economic growth’ in the country by financing small businesses.

In the same post he said that ‘the world wants to invest in Argentina’ and even provided the name and link to the cryptocurrency’s website.

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