Javier Milei, the President of Argentina, has refuted claims that he promoted the contentious LIBRA memecoin, a digital currency venture that led to significant financial losses for investors.

During an interview on February 17th, Milei spoke about the issue, clarifying that he only disseminated details about the token, rather than actively endorsing it. He asserted that his actions were transparent and done with honest intentions.

He stated:

“My role was sharing, not promotion…My actions were in good faith, and I also suffered consequences.”

The LIBRA token, operating on the Solana blockchain, saw its market capitalization jump to $4.56 billion on February 14th following Milei’s social media mention on X. However, after he removed his post and disassociated himself from the project, the token’s value plummeted by 95% within a few hours.

Subsequent reports indicated that LIBRA’s creators were implicated in illicit activities like insider trading and price manipulation, leading to accusations of wrongdoing.

Milei clarified that the project was presented to him as a potential funding avenue for entrepreneurs facing difficulties in obtaining financial backing due to unconventional business models. He reiterated that his involvement was limited to sharing information about the initiative with his followers, not providing an active endorsement.

He further commented:

“I am interested in any endeavor that enhances financial opportunities for technology entrepreneurs. I believe my actions were without fault, as they were driven by good intentions.”

Investor losses and political fallout

The President emphasized that the Argentine government had no association with the LIBRA project, and that the financial impact was minimal within Argentina, affecting only a small number of local investors.

Milei stated firmly:

“Did the Argentine State incur losses? No. Did Argentinian citizens lose money? Perhaps only a handful, maybe four or five at most. The majority of investors were from China and the United States.”

Furthermore, Milei pointed out that the investors in LIBRA were experienced volatility traders who were fully aware of the inherent risks. He characterized the situation as a private affair between individuals who voluntarily engaged with a high-risk financial asset.

He elaborated:

“These are experts in this specific type of financial instrument. Those who invested were well-informed about the potential risks – they are volatility traders. This concerns a private agreement between individuals, based on their own willing participation.”

Beyond the monetary losses, this controversy has created significant political unrest for Milei.

The repercussions have led to legal examinations and demands for his impeachment, with detractors blaming him for eroding investor trust and damaging Argentina’s financial reputation.

Milei admitted that this event has prompted him to re-evaluate his public communication strategy, stating:

“Reflecting on the political impact, I recognize the need for personal growth. I need to acknowledge that my behavior hasn’t adjusted sufficiently since becoming president, and I have continued acting as the same Javier Milei from before. Sadly, this situation highlights the need to become more selective and less publicly accessible.”

Source: cryptoslate.com