Milei and the geopolitics of cryptocurrencies: financial freedom or market manipulation?

The promotion of cryptocurrencies by President Javier Milei is neither an isolated event nor a mere ideological gesture. What might look like support for decentralisation and the free market in fact conceals a far more complex phenomenon.

First it was CoinX in 2022; now it is LIBRA in 2025. Both cases reveal a disturbing pattern of behaviour: a political leader promoting specific crypto projects that end in financial collapse, massive losses for investors and a worrying lack of regulation.

Is this simple recklessness, or is there market manipulation driven by hidden interests?

In this analysis, we explore two key aspects:

The geopolitics behind Milei’s crypto-politics: is Argentina a testing ground for crypto deregulation, or a pawn in a larger financial game?

The regulatory vacuum and its impact on the Argentine economy: how is the lack of supervision turning the country into a haven for large-scale financial fraud?

Cryptocurrencies are not just a financial or technological phenomenon; they are also a geopolitical instrument. Countries with different motivations have taken very different approaches to digital assets:

El Salvador (2021): made Bitcoin legal tender, defying the IMF in pursuit of financial independence.

Dubai: established itself as a crypto hub with favourable regulation and tax advantages.

The US and the European Union: apply strict regulation to balance innovation with market security.

China and Russia: restrict the use of cryptocurrencies, which they see as a threat to state control over the economy.

Where does Argentina stand on this chessboard?

Argentina has a historically unstable economy, runaway inflation and badly eroded confidence in its national currency. That makes it fertile ground for the mass adoption of cryptocurrencies, but also a perfect target for high-risk speculative operations.

Milei has gone beyond supporting financial decentralisation: he has promoted specific crypto projects with catastrophic consequences.

Milei, then still a national deputy, promoted CoinX on his social media.

CoinX offered guaranteed returns without explaining its financial model (a classic sign of a pyramid scheme).

The National Securities Commission (CNV) stepped in and ordered its closure.

Outcome: investors lost money and Milei washed his hands of the problem, claiming ignorance.

Now president, Milei promoted the LIBRA token from his official X account.

Within a few hours, LIBRA reached a market capitalisation of $4.5 billion.

The price fell by 89% after its launch, causing massive losses.

Analysts detected signs of a pump & dump, a strategy in which an asset’s value is artificially inflated before the gains are cashed out.

LIBRA’s developers withdrew approximately $87 million before the collapse.

Milei deleted his post and once again claimed ignorance.

A clear pattern: promotion, artificial surge, collapse and disavowal.

The big question: is this mere irresponsibility, or is there a hidden financial interest?

A president’s endorsement of a specific cryptocurrency is not an innocent act. It builds market confidence and mobilises investment, benefiting the insiders who pull out their capital at exactly the right moment. By acting as a promoter, Milei not only reinforces his libertarian narrative but also amplifies schemes that end up hurting small investors.

The lack of crypto regulation in Argentina

Argentina has been one of the countries with the highest rates of cryptocurrency adoption, but without a solid regulatory framework. This has made the country fertile ground for fraud.

The US and the SEC: actively investigate crypto fraud and penalise irresponsible promotion (for example, Elon Musk and Dogecoin).

Europe and MiCA (the Markets in Crypto-Assets Regulation): strict rules have been introduced to control the market and prevent scams.

Argentina: has no body with sufficient authority to intervene in fraudulent schemes such as LIBRA.

The result? A completely unregulated crypto market in which anyone can launch a token without meeting any prior requirements.

Milei and the failure to impose controls

Since taking office, Milei has pushed an agenda of extreme deregulation. However, instead of establishing a framework that gives investors security, he has fostered a model in which:

There are no protections against financial fraud.

Any person or group can launch a cryptocurrency without a prior audit.

The supervisory institutions (the CNV and the Central Bank) have only limited powers to intervene.

The problem is not the promotion of cryptocurrencies as such, but the way it is done and the consequences it brings.

Impact on the Argentine economy

The consequences of this regulatory vacuum and of Milei’s irresponsible promotion of cryptocurrencies are alarming:

Loss of confidence in Argentina’s crypto ecosystem → deterring serious investment in the sector.

Capital flight to safer markets → hampering the country’s financial development.

Greater exposure to fraud → hitting hardest the small investors who trust the president’s word.

The Milei–CoinX–LIBRA case is not an isolated episode. It is the manifestation of a model of economic governance based on unchecked deregulation, which paves the way for runaway speculation.

If appropriate regulation is not put in place, Argentina will cement its position as a high-risk market for crypto investment, where:

Retail investors will continue to be the main victims.

The government will take no responsibility for frauds it has indirectly endorsed.

The country will be a magnet for financial projects of dubious legitimacy.

The big final question: is Milei merely a naive champion of financial freedom, or is there a pattern of market manipulation driven by hidden interests?

If the pattern repeats itself with a third cryptocurrency, the answer will be obvious.