Argentina President Javier Milei has taken a hands-off approach to provinces launching their own currencies, signaling a shift in policy. This change was evident in a recent exchange between President Milei and Ricardo Quintela, the governor of La Rioja province. In a January 14 interview with Radio Mitre, President Milei stated that he would not oppose the legal creation of local currencies by provincial authorities.

While Quintela believes that the market will determine the success of these projects, President Milei expressed caution about potential risks, particularly related to inflation. He warned that individuals receiving payments in quasi-currencies from irresponsible governors could experience a loss of income.

The governor of La Rioja has been advocating for a separate currency for his province, following President Milei’s significant devaluation of the Argentine peso by 50% since taking office on December 10.

This decision is part of a broader strategy to address Argentina’s high inflation rates, which have reached levels not seen in over three decades. The new administration has also reduced the funds allocated from the federal budget to provinces.

Quintela criticized these measures as a form of national abandonment and stressed the urgent need to pay salaries, including those of police officers. As a result, he has urged the local legislature to create the necessary legal framework for minting a local currency. This sentiment was shared by Axel Kicillof, the governor of Buenos Aires province, who also mentioned the possibility of issuing a local currency in December 2023.

For more insights on how a crypto-friendly leader could impact Argentina’s economy amidst hyperinflation, stay tuned to Global Crypto News.

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