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President Javier Milei To Dissolve Argentina’s Central Bank

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  • Javier Milei, Argentina’s president-elect, plans to dissolve the central bank as part of his major economic reforms.
  • Milei is assembling a more balanced Cabinet than initially expected, including key positions in social security and the state oil company.
  • He faces challenges in implementing his ambitious plans like dollarizing the economy and privatizing state companies.

President-elect Javier Milei of Argentina, known for his unapologetically bold economic reforms, has reaffirmed his commitment to disbanding the nation’s central bank.

This move, long considered a cornerstone of his libertarian agenda, stands as a testament to his unwavering stance on radical economic restructuring.

New Cabinet, New Directions

As Milei prepares to assume office on December 10, there’s a noticeable shift in his approach towards forming his Cabinet. Contrary to expectations of a lineup mirroring his hardline libertarian beliefs, recent announcements hint at a more balanced team composition.

Economist Osvaldo Giordano, a key figure from Cordoba, is set to lead ANSES, Argentina’s social security administration. This decision veers away from Milei’s earlier plans of appointing close allies to pivotal positions.

Additionally, the incoming head of the state-owned oil company YPF will be Horacio Marin, a seasoned executive from the private energy sector. These selections reflect a nuanced approach, balancing Milei’s radical ideas with pragmatic governance.

See Also: Pro-Bitcoin Javier Milei Becomes New President of Argentina

Challenging the Status Quo

Milei’s presidency is set to embark on a journey of formidable challenges and radical transformations. His ambitious plans include dollarizing Argentina’s economy and privatizing major state enterprises such as YPF.

However, these reforms won’t be a walk in the park. Milei’s coalition holds limited influence in Congress and lacks support from provincial governors.

Balancing these political dynamics while adhering to his libertarian principles will require a high-wire act of political and economic acumen.

A significant setback emerged with Emilio Ocampo, Milei’s initial choice for central bank leader, declining the role due to policy disagreements.

This development adds complexity to Milei’s agenda, especially regarding his proposal to replace the Argentine peso with the U.S. dollar.

The central bank’s dissolution and the peso’s replacement – ideas once touted as “non-negotiable” by Milei – now face a reality check. While these ideas garnered attention and support during his campaign, the practicality and timing of such drastic measures are under scrutiny.

Local financial markets are already showing signs of strain as Milei finalizes his economic team. The central bank’s struggle to attract buyers for its short-term debt highlights growing uncertainty and the uphill battle in taming inflation.

Milei’s pick for the economy minister remains unconfirmed, with Luis Caputo, a former finance minister and banking expert, among the speculated choices.

Caputo’s experience in handling complex financial instruments and his stint at the central bank could offer valuable insights for Milei’s ambitious economic overhaul.

A Balancing Act in Turbulent Times

Milei’s approach to governance will be a tightrope walk between his libertarian convictions and the practicalities of political and economic governance.

As he prepares to take the helm, the direction in which he steers Argentina will be closely watched by both supporters and skeptics.

See Also: Bitcoin Lightning App ‘Wallet of Satoshi’ Exits US Market

His administration faces the daunting task of dismantling the intricate web of price and currency controls established by the outgoing government. Doing so without igniting hyperinflation or causing economic turmoil will be a test of Milei’s mettle as a leader.

In the face of these challenges, Argentina stands at a crossroads. Milei’s presidency could mark a pivotal moment in the nation’s economic history, potentially ushering in an era of significant change.

His boldness, tempered with a newfound pragmatism, might just be the recipe Argentina needs to navigate these turbulent economic waters.

Whether Milei’s radical vision will translate into effective governance remains to be seen. Argentina, and the world, watches with bated breath as a new chapter in its economic story begins to unfold.



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Cryptocurrency Market Update: Bitcoin Slips Below $70,000 Amidst High Liquidation

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In a swift turn of events, Bitcoin (BTC), the pioneering cryptocurrency, dropped below the $70,000 threshold early on Wednesday following a wave of investor sell-offs. Just a day prior, Bitcoin had crossed the $71,000 mark, but market sentiment swiftly shifted, dragging other major altcoins—including Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC)—into the red zone.

According to CoinMarketCap data, the overall Market Fear & Greed Index stood at 75 (Greed) out of 100, indicating a mix of optimism and apprehension among traders. Notably, the Bittensor (TAO) token emerged as the top gainer with a remarkable 24-hour surge of over 7 percent, while dogwifhat (WIF) experienced the largest loss, plummeting nearly 16 percent.

Bitcoin (BTC) Price Update Bitcoin’s price tumbled to $69,089.01, marking a 24-hour dip of 3.05 percent, as reported by CoinMarketCap. On the Indian exchange WazirX, BTC was priced at Rs 60.93 lakh.

Other Major Cryptocurrencies Ethereum (ETH) saw a 24-hour loss of 4.81 percent, trading at $3,508.86, while Dogecoin (DOGE) registered a dip of 5.59 percent, currently priced at $0.1879. Litecoin (LTC) and Ripple (XRP) also experienced losses, with Solana (SOL) marking a 24-hour loss of 3.44 percent.

Top Gainers and Losers Bittensor (TAO) led the pack of gainers with a 7.30 percent surge, while dogwifhat (WIF) suffered the most significant loss, dropping by 15.58 percent.

Market Analysis and Expert Insights Experts weighed in on the market scenario, attributing Bitcoin’s downturn to heightened liquidations and cautious sentiment ahead of the upcoming US CPI data release. While Bitcoin’s immediate support rests at $67,700, resistance is expected at $70,400. Ethereum proponents face challenges amid hopes for an ETF approval, with the SEC providing limited updates on the matter.

Final Thoughts The cryptocurrency market remains highly dynamic, with prices fluctuating rapidly and investor sentiment playing a pivotal role. As the market navigates through volatility, it’s essential for investors to stay informed, exercise caution, and seek expert advice before making any investment decisions.

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Cryptocurrency: A Scapegoat for Foreign Policy Failures?

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Cryptocurrency has once again found itself at the center of a heated debate, this time regarding its alleged role in facilitating illicit activities and circumventing sanctions imposed by the United States. The Biden administration, in particular, has come under scrutiny for its handling of the issue, with some accusing it of using digital assets as a convenient scapegoat for broader foreign policy shortcomings.

In a recent hearing before the Senate Banking Committee, Deputy Treasury Secretary Wally Adeyemo raised concerns about the misuse of cryptocurrencies by foreign adversaries such as Iran, Russia, North Korea, and militant groups like Hamas. Adeyemo’s remarks underscored a growing unease within the U.S. government regarding the potential national security implications of unregulated digital currencies.

However, voices from within the cryptocurrency industry and Congress have pushed back against the administration’s narrative. Faryar Shirzad, Chief Policy Officer at Coinbase, one of the leading cryptocurrency exchanges, pointed out that the prevalence of illicit activity in the crypto space is relatively low compared to traditional finance. Instead of demonizing cryptocurrencies, Shirzad argued, the focus should be on targeting bad actors operating offshore.

Senator Tim Scott, the ranking Republican on the Senate Banking Committee, echoed these sentiments, accusing the Biden administration of using digital assets as a distraction from its failure to effectively combat financial flows to sanctioned entities. Scott’s criticism reflects broader skepticism among some lawmakers about the government’s approach to regulating cryptocurrencies.

One area of potential agreement between the Biden administration and the cryptocurrency industry is the need for clearer regulations governing stablecoins, a type of digital asset pegged to a fiat currency like the U.S. dollar. Both sides recognize the importance of addressing the potential risks associated with stablecoin issuance and usage, particularly in the context of national security and financial stability.

The debate over stablecoins has intensified following reports of their alleged role in facilitating illicit transactions, including those linked to Russia’s war effort in Ukraine. The Treasury Department has called for increased oversight of stablecoin issuers and transactions, while also advocating for legislation that would subject them to stricter regulatory standards.

Despite the contentious nature of the discussion, there are signs of bipartisan cooperation on certain aspects of cryptocurrency regulation. A bipartisan bill addressing stablecoin regulation passed the House Financial Services Committee last year, signaling a potential path forward for legislative action in this area.

As the debate over cryptocurrency regulation continues to unfold, it is clear that finding the right balance between innovation and security will be paramount. While concerns about illicit activity and national security must be addressed, policymakers must also recognize the potential benefits of cryptocurrencies in fostering financial inclusion and technological advancement.

Ultimately, the resolution of these issues will require thoughtful collaboration between government officials, industry stakeholders, and lawmakers to develop a regulatory framework that promotes innovation while safeguarding against misuse. Only through constructive dialogue and cooperation can we ensure that cryptocurrencies fulfill their potential as a force for positive change in the global economy.

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Bitcoin Resurgence: Why Wall Street Is Embracing the Crypto Revolution

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Andrew Pratt of Wiser Wealth Management in Marietta, Ga., finds little resistance as he proposes Bitcoin investments to his firm’s committee. With Bitcoin surging 140% in the past year and backed by giants like BlackRock, skepticism has waned. Pratt sees the potential to allocate a modest 1% of client portfolios to Bitcoin, acknowledging the limited downside risk compared to potential gains.

The debate over Bitcoin’s intrinsic value seems to have lost its relevance amidst its soaring market performance. Once dismissed, Bitcoin now boasts a market value of $1.3 trillion, driving the total crypto market to $2.5 trillion. Wall Street, once wary, now views cryptocurrency as an opportunity for profit rather than a speculative venture.

Despite lingering doubts about Bitcoin’s utility beyond speculation, Wall Street executives are increasingly supportive. BlackRock’s CEO, Larry Fink, notably reversed his stance, endorsing Bitcoin’s long-term prospects and championing the iShares Bitcoin Trust, now one of the largest Bitcoin ETFs with nearly $18 billion in assets.

While skepticism persists about Bitcoin’s status as a real asset or currency, its growing acceptance on Wall Street underscores the evolving landscape of finance. As institutions embrace cryptocurrencies, Bitcoin’s journey from pariah to portfolio asset highlights the transformative power of digital assets in reshaping traditional investment strategies.

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