Javier Milei’s Washington Visit: A Presidency Under Fire
Argentine President Javier Milei arrived in Washington, D.C., on Thursday, stepping into the eye of a political hurricane that has engulfed his presidency. His highly anticipated trip, scheduled weeks ago, was initially aimed at securing a crucial deal with the International Monetary Fund (IMF) and strengthening ties with Donald Trump’s administration. However, the visit has been overshadowed by a spiraling controversy: Milei’s role in the collapse of a cryptocurrency token called $LIBRA, which erased $4.6 billion in market value overnight. The scandal has left his presidency battered, his opponents orchestrated in outrage, and his team scrambling to contain the fallout.
The $LIBRA Token Collapse and Its Fallout
The controversy began last Friday when Milei personally endorsed $LIBRA, a newly launched cryptocurrency, in a post on X (formerly Twitter). The token’s price skyrocketed as speculators flocked to it, interpreting the Argentine president’s support as a seal of approval. However, the rally was short-lived. Within hours, the price plummeted, wiping out billions in market value. Milei quickly deleted the post, and his office sought to distance itself from the project. But the damage was already done.
Haydon Davis, a key figure behind the $LIBRA token, added fuel to the fire by alleging that Milei was more involved in the project than he had admitted. Leaked text messages, published by CoinDesk, suggested that Davis had paid Karina Milei, the president’s sister and closest advisor, to “control” him. Both Milei and Davis denied the allegations, with Milei calling the accusations an attempt to smear his presidency during a television interview on Monday. He denied receiving money for the endorsement but left unanswered the question of why he initially backed the token or why he deleted the post. The ambiguity only deepened the public’s skepticism.
Market Reactions and IMF Talks in Washington
The fallout from the $LIBRA scandal sent shockwaves through Argentina’s financial markets. The Buenos Aires stock index plunged 6% on Monday, though it partially recovered later in the day. The peso, already under strain, took another hit, piling pressure on Milei’s economic team. The scandal has also complicated his primary mission in Washington: negotiating an IMF deal. For months, Argentina has been locked in talks with the fund to unlock new funding and ease currency controls. Economy Minister Luis Caputo claimed on Monday that the agreement was “almost done,” but insiders suggest the IMF remains cautious, particularly about Milei’s handling of the peso’s exchange rate.
The IMF has pushed for a more flexible currency policy to address Argentina’s economic woes, but Milei’s government insists on maintaining control to prevent inflation from spiraling further. The stakes are high, and the $LIBRA scandal has only weakened Milei’s position at the negotiating table. As he meets with U.S. officials, the question looms: can he secure the IMF deal while navigating the fallout from the crypto fiasco?
Navigating U.S. Relations and Trade Tensions
Milei’s trip to Washington also comes at a time of shifting U.S.-Argentina relations. While he has been one of Donald Trump’s strongest allies on the global stage, the U.S. president’s new tariff plan could put Argentina in a difficult position. Trump is proposing reciprocal levies on countries that impose heavy duties on U.S. goods, and Argentina’s protectionist trade policies could make it a prime target. Milei is expected to raise these concerns during his meetings with senior U.S. officials.
CPAC and the Crypto Community
Despite the brewing storm back home, Milei is likely to receive a warm reception at the Conservative Political Action Conference (CPAC), where he is scheduled to deliver a speech. The event, a bastion of Trump-friendly conservatism, has embraced Milei’s free-market stance and anti-establishment rhetoric. Last year, his speech at CPAC went viral among right-wing circles, and his team is banking on a repeat performance to shift the narrative away from the $LIBRA debacle.
Before addressing CPAC, Milei is set to meet Elon Musk, one of his most vocal supporters and a close friend. Musk has praised Milei as a “true reformer” and backed his aggressive economic policies. Their meeting is expected to focus on energy, trade, and digital assets, though the elephant in the room—the $LIBRA collapse—could cast a shadow over the discussions. While Musk has yet to address the scandal publicly, the crypto community remains divided.
A Resilient Crypto Community and the Road Ahead
Amid the chaos, some in the crypto community have expressed optimism about Argentina’s potential to play a key role in global crypto adoption. One Argentine user on X wrote, “The main thing I can say after the $LIBRA incident is that I believe even more in Bitcoin and Ethereum than ever before. We’re resilient as fuck.” Ethereum creator Vitalik Buterin also weighed in, praising the country’s crypto talent and even suggesting that Argentina host Devconnect, a major Ethereum developer conference. Milei responded with enthusiasm, tweeting, “THANK YOU VERY MUCH, Vitalik Buterin, FOR YOUR WORDS ABOUT ARGENTINE TALENT!!! It would be an honor for Argentina to host Devconnect. LONG LIVE FREEDOM, DAMN IT…!!!”
As Milei navigates this tempestuous chapter in his presidency, the focus will be on whether he can stabilize Argentina’s economy, restore investor confidence, and weather the political storm sparked by the $LIBRA scandal. The world will be watching to see if he can turn the tide in Washington—and back home.
