President Milei Withdraws Support for Controversial Crypto Token After Concerns Raised
President Javier Milei promoted a crypto token aimed at aiding Argentine businesses but deleted the post amid public concerns about potential scams. He initially claimed no personal profit from the venture. Following backlash, including fears of hacking and scams, he withdrew his support after five hours. Milei’s administration continues to face economic challenges despite claims of attracting investment.
President Javier Milei recently endorsed a crypto token aimed at supporting small businesses in Argentina, which prompted considerable public unease regarding its legitimacy. The token, known as ‘$LIBRA’, was introduced in a post on X, where Milei emphasized that the initiative was privately managed and that he would not personally benefit financially from it.
The token’s name seems to reflect Milei’s political party, La Libertad Avanza, or his background as a libertarian economist. He mentioned to Bloomberg that he had met with KIP Protocol, the company behind the token, several months earlier. This company’s website features a blog post with a selfie of Milei and its co-founder, dated October 20, showcasing their connection.
However, many Argentines expressed alarm, fearing that either the president’s social media account had been compromised or that he had fallen victim to crypto-related scams. The community voiced their concerns on X, a platform owned by Milei’s associate Elon Musk, cautioning against the risks associated with the token.
Five hours after his initial announcement, President Milei retracted his support for the token, stating he was unaware of the project’s specifics before making his endorsement. He expressed, “I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word.”
Despite being viewed positively by Wall Street, Milei has encountered challenges in attracting foreign investments as his government implements measures to combat inflation. Furthermore, he has yet to remove the stringent currency controls his administration inherited over a year ago.
Concerning Argentina’s economy, while some positive growth is predicted for 2025, issues persist, including U.S. tariffs, reductions in production from major manufacturers, and setbacks in critical export routes due to inadequate investments. In his initial message, Milei concluded by claiming, “the world wants to invest in Argentina,” underscoring the ongoing economic aspirations amid uncertainties.
In summary, President Javier Milei’s promotion of the ‘$LIBRA’ crypto token intended for local businesses was quickly rescinded due to public skepticism about its legitimacy. This incident reflects broader economic challenges in Argentina, where Milei seeks investment amid heightened scrutiny and existing fiscal pressures.
Original Source: www.batimes.com.ar
