Argentina's President Javier Melei has ignited controversy by advocating for a government-backed cryptocurrency to replace the peso. He praised the Monero token as a tool for economic recovery, but opposition lawmakers deem the move unconstitutional and are threatening impeachment. Markets have responded with volatility; the peso weakened, Argentine bonds dipped, and Monero saw a 7% trading spike. While Melei's administration frames this as a strategy to combat inflation and modernize the economy, the political backlash raises questions about the future of Argentina's national currency and Melei's presidency.
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00:00Argentina's president is pushing crypto, and now lawmakers want him out.
00:04A government-backed digital coin, the opposition says it is unconstitutional and they're calling
00:09for an impeachment.
00:10Let's break this down.
00:11So what's happening?
00:12Well, Argentina's president Javier Mele just sparked a political firestorm after promoting
00:16a government-backed cryptocurrency as a potential replacement for the peso.
00:20According to Reuters, Mele praised the Monero token and suggested that the digital assets
00:25could play a role in Argentina's economic recovery.
00:28But lawmakers aren't having it.
00:29Government leaders say that Mele's endorsement of the private cryptocurrency over the national
00:33currency violates Argentina's constitution.
00:35The Peronist coalition, the main opposition bloc, has even threatened to launch an impeachment
00:41trial, accusing Mele of destabilizing Argentina's financial system.
00:45The backlash is already shaking Argentina's financial markets.
00:48The peso weakened against the U.S. dollar, and Argentine bonds dipped as uncertainty
00:52over Mele's economic agenda deepens.
00:54Meanwhile, crypto markets saw Monero spike nearly 7 percent in trading.
00:59As investors speculate whether Argentina could actually embrace digital assets on a
01:03national level.
01:04The big question now, is this just Mele being Mele?
01:07Or could Argentina actually move towards adopting crypto on a government level?
01:11Lawmakers are scrambling to block any policy that would legitimize a crypto-based financial
01:15system.
01:16But Mele's administration is just doubling down, saying this is part of a broader plan
01:19to fight inflation and modernize Argentina's economy.
01:23So could Argentina become the first country to ditch its national currency for crypto?
01:27Or is this just another political stunt that could cost Mele his presidency?
01:31Let me know what you think in the comments below, and follow Benzinga for the latest
01:34on this developing story.