Javier Milei's pro-crypto party wins in Argentina midterm elections

Argentina's President Javier Milei, who leads the free-market-oriented 'La Libertad Avanza' party, won the midterm elections, and Milei has emerged as a leading candidate for the 2027 presidential election.

On the 27th (local time), according to local outlet La Nación, with 99% of ballots counted, La Libertad Avanza secured victory with 40.68% of the vote, overtaking the Peronist Party. In particular, it won in Buenos Aires province, traditionally a Peronist stronghold, markedly reversing the balance of power.

This result is the exact opposite of the flow at the time when the Peronist Party suffered a crushing defeat in the local elections last September. The recent strengthening of economic cooperation by signing a currency swap agreement with the United States worth US$20 billion is also seen as having positively affected the election result.

Although the Peronist Party still retains majority status in Congress, this victory cements President Milei as a strong frontrunner for the October 2027 presidential election.

President Milei, a former economist, has made expanding the free market, curbing inflation, and reducing government intervention his main policy pillars. He has pursued pro-virtual-asset policies, including promoting legislation in December 2023 to allow contracts to be settled in Bitcoin (BTC) and other virtual assets (cryptocurrencies).

However, his political credibility temporarily declined due to allegations of manipulation of the Libra (LIBRA) token in February. The Libra token's market capitalization surged to US$4.6 billion immediately after President Milei posted a related mention on X, then plunged 94% within hours, raising suspicions of insider trading. Subsequently, Argentina's anti-corruption commission concluded there was no illegal conduct by President Milei.