Peso in freefall: US lifeline to Argentina met with Bitcoiners’ doubt
US steps in with a lifeline as Argentina battles peso turmoil, investor flight and President Javier Milei’s waning credibility. Crypto adoption surges.
As Argentina grapples with soaring inflation and a run on the peso that has battered domestic asset prices, the United States has stepped in with the promise of a financial lifeline — though Bitcoin proponents remain skeptical it will make a difference.
The peso tumbled roughly 4.5% last week as investors questioned President Javier Milei’s ability to deliver fiscal and structural reforms following his party’s poor showing in Buenos Aires provincial elections earlier this month. The sell-off was compounded by a corruption investigation involving a family member of Milei, deepening political uncertainty.
Investor unease triggered heavy outflows from Argentine markets. The central bank was forced to spend about $1.1 billion over three days to defend the peso — a hefty sum given that the country holds only about $20 billion in liquid foreign reserves, according to Bloomberg.