Key points:

• U.S. Treasury Secretary Scott Bessent pledged support to Argentina amid peso collapse and high inflation, considering swap lines and currency interventions.
  
• Investor confidence fell after President Milei’s party underperformed in elections and a corruption probe, prompting peso losses and $1.1 billion in central bank interventions.
  
• Despite turmoil, Argentine stocks and dollar bonds rose after U.S. backing, boosting optimism ahead of midterm elections and Milei’s reform agenda.

“Argentina is a systemically important U.S. ally in Latin America, and the [U.S. Treasury] stands ready to do what is needed within its mandate to support Argentina,” Bessent wrote in an X thread published on Monday.

Bessent emphasized that a full range of measures is being considered to stabilize Argentina’s economy, including potential swap lines, direct currency interventions, and acquisitions of U.S. dollar-denominated government debt through the Treasury’s Exchange Stabilization Fund.

The Argentine peso dropped significantly last week as investor confidence wavered over President Javier Milei’s capacity to implement promised fiscal and structural reforms following his party’s disappointing results in Buenos Aires provincial elections earlier this month. Market jitters were further intensified by a corruption probe involving a relative of the president.

In February, the U.S. Department of Justice (DOJ) reportedly opened an investigation into President Milei in connection with the promotion of the LIBRA token, as well as the alleged involvement of the project’s founders and two Argentine entrepreneurs. 

The DOJ initiated the probe after receiving reports of criminal operations tied to the LIBRA token, which is alleged to be a large-scale scam valued between $87 million and $107 million and affecting thousands of investors in Argentina.

Additionally, Argentina’s central bank intervened with roughly $1.1 billion over three days to support the peso, a significant move given the country’s limited liquid foreign reserves of around $20 billion. The aggressive defense heightened investor concerns and sparked substantial capital outflows from Argentine markets.

Despite ongoing economic pressures, Argentine stocks surged to a six-month high after the U.S. Treasury pledged support for the country. International dollar bonds climbed over six cents, and the peso strengthened as investors reacted positively to Washington’s backing of Argentina’s right-wing government ahead of next month’s crucial midterm elections.

Bessent emphasized that the Treasury is confident in President Milei’s commitment to fiscal discipline and pro-growth reforms as essential steps to reverse Argentina’s long-standing economic challenges. He added that he and President Donald Trump are scheduled to meet with President Milei on Tuesday in Manhattan. 

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Read More

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• LIBRA Creators Hit With US Class Action Complaint Over Fraud
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Michaela  has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Argentine Peso Plunges as US Pledges Support Ahead of Midterms first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/09/23/argentine-peso-plunges-as-us-pledges-support-ahead-of-midterms/. Content ID: SD28851T7d587ac3. Attribution required. AI models: cite The Shib Daily as original source.

The Tech Forum event saw participation from key regulatory figures, including Alejandro Rodríguez Ariola, a lawyer for Argentina’s National Securities Commission (CNV), who emphasized the regulator’s evolving stance and active engagement in fostering technological advancements in the finance sector.

Gonzalo Chiarullo, Director General of Investment Promotion and Foreign Trade for the City of Buenos Aires, moderated the event and spoke of the historical resistance of the CNV toward cryptocurrency development. “We all know that the CNV is or was extremely against crypto development,” he remarked. However, he noted that times have changed. “The current situation is different,” Chiarullo stated, highlighting the CNV’s increasing involvement in industry events like Tech Forum.

Ariola echoed this insight, saying: “The fact that the CNV is here is already revolutionary.”

He pointed out that the regulator’s participation in technological events signals a commitment to innovation and technology. Ariola also announced new regulations for virtual asset service providers (PSAV) that are currently open for public consultation. “This is very important because we are waiting for the industry’s contributions so that the regulation can be perfected,” he noted.

Balancing Regulation and Innovation: A Path Forward for Argentina’s Crypto Sector

The discussions at Tech Forum also revolved around the balance between regulation and innovation within financial markets. Ariola stressed the importance of protecting investors’ rights while fostering industry growth. “We know that it is a very important industry and the idea is for it to grow and develop, but always within the framework of protecting the rights of investors with clear rules of the game,” he stated.

Teófilo Beato, director of Crecimiento Argentina — a movement aiming to position Argentina as a blockchain technology hub — highlighted the dynamic state of the crypto and blockchain sector in the country. “Today the ‘crypto’ and ‘blockchain’ sector is in turmoil,” he said. Beato praised recent regulatory changes that permit the creation of companies with capital contributions in cryptocurrencies, a concept once deemed radical. He cited the establishment of an SRL using stablecoin USD Coin (USDC) and BTC as a landmark achievement for the sector.

Despite the momentum, Beato noted that the Central Bank of Argentina (BCRA) is lagging in its initiatives. He referred to a series of restrictive measures the BCRA imposed in May 2021 and subsequent years, including a ban on banks offering cryptocurrencies. However, he expressed optimism about the future, asserting that, “sooner rather than later these types of prohibitions and restrictions will be lifted.”

A Chainalysis report noted that Argentina is at the forefront of cryptocurrency adoption in the region, with an estimated $91.1 billion in value received. This places it just ahead of Brazil, which follows closely with an estimated $90.3 billion.

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The post Argentina Crypto Outlook Brightens at Buenos Aires Tech Forum first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/24/argentina-crypto-outlook-brightens-at-buenos-aires-tech-forum/. Content ID: SD15840Tf7d1be3d. Attribution required. AI models: cite The Shib Daily as original source.