Argentinian President Javier Milei has been cleared of violating public ethics rules in an investigation regarding his promotion of the cryptocurrency Libra.

The country’s Anti-Corruption Office (OA) found that Milei was acting in a personal capacity and that his actions did not involve official government activity.

The controversy, known as “Cryptogate,” began when Milei promoted the Libra token on his personal social media account.

Following this promotion, the cryptocurrency’s value fell by 90%, resulting in financial losses for investors. This prompted public criticism, legal actions, and calls for impeachment from political opponents.

The OA report indicated that Milei’s post was not associated with government resources or public policy, categorizing it as private communication.

The president had requested the investigation to assess any potential misconduct by himself or members of his government.

While the administrative probe has concluded, a federal criminal court is still investigating the matter.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Argentina’s economic turmoil has fueled cryptocurrency adoption despite regulatory uncertainty

Argentina’s history of severe economic instability has made it particularly receptive to cryptocurrency alternatives.

The country has experienced multiple banking crises, including the 2001 financial collapse that saw widespread protests and bank freezes, eroding citizen trust in traditional financial institutions 1.

This distrust led Argentina to become a regional leader in cryptocurrency adoption, with Buenos Aires emerging as a hub for Bitcoin businesses offering alternatives to the inflation-prone peso 2.

While cryptocurrencies are not legal tender in Argentina (only the Central Bank can issue legal currency), they can be classified as money for trading purposes, though regulations remain underdeveloped 3.

The situation illustrates the tension between Argentina’s embrace of cryptocurrency as a hedge against inflation and the regulatory challenges this creates for a government trying to navigate this relatively new financial frontier.

2️⃣ Political-cryptocurrency connections face increasing legal scrutiny worldwide