- Javier Milei, president of Argentina, allows local provincial currencies, challenging the established monetary system and encouraging autonomy.
- Ricardo Quintela proposes a currency for La Rioja, generating tensions with Milei and marking a radical change in monetary policy.
Since Javier Milei assumed the presidency of Argentina in December 2023, he has marked a clear position regarding the initiative of provincial governments to implement their own currencies. This position was evidenced in the midst of a public confrontation between Milei and Ricardo Quintela, Governor of La Rioja.
In an interview with Radio Mitre on January 14, Milei expressed his willingness not to legally oppose the establishment of local currencies by Argentina’s provincial governments.
Accordingto the political leader, the market will be in charge of establishing the value of these proposals. Despite this, Milei highlights the possible negative consequences of “alternative currencies”, indicating that they could intensify inflation and facilitate fraudulent practices among those who opt for them.
“Those who receive payments in quasi-currencies from irresponsible governors will clearly see a decrease in their income. What is not taken away from them through budget adjustments will be lost due to the inflation inherent in these quasi-currencies.”
Ricardo Quintela, governor of La Rioja, has expressed his intention to establish his own currency for the province. In view of this, Milei issued a warning.
Quintela takes this measure as a response to the 50% depreciation of the national currency promoted by Milei to combat inflation, which has reached its highest point in three decades. Also, provincial administrations have seen a decrease in the resources allocated from the federal budget under the current presidential administration.
Quintela has lobbied the legislature of La Rioja to establish the legal framework to allow the implementation of a regional currency. He describes these actions as a “lack of national attention,” supporting the need to fund police uniforms. He interprets these actions as an oversight at the national level, supporting the need for resources to purchase police uniforms.
In Rosario, Argentina’s third most populated city, a landlord and tenant have agreed to make monthly rentpayments via Bitcoin. These legal innovations, promoted by the recent presidential administration, make this agreement the pioneer of its kind in Argentina.
