Milei Pushes Electoral Changes as Cryptocurrency Misstep Raises Questions

Argentina’s Senate approved the suspension of the PASO primary elections, marking a significant political win for President Javier Milei.

The decision, which passed with 43 votes in favor, 20 against, and six abstentions, eliminates the August primaries ahead of October’s midterm elections. This move could strengthen Milei’s La Libertad Avanza party while complicating opposition coalitions’ candidate selection processes.

The PASO system, introduced in 2011, required all voters to participate in open primaries to determine candidates for general elections. Milei’s administration justified the suspension by citing economic savings of 45 billion pesos ($248 million).

Critics argue the decision aims to weaken opposition parties, which relied on PASO to resolve internal disputes. Without the primaries, smaller parties may struggle to organize effectively, potentially fragmenting opposition votes.

This legislative development coincides with heightened scrutiny over Milei’s link to the cryptocurrency $LIBRA. Last week, he endorsed $LIBRA on social media as an innovative financial tool.

The cryptocurrency initially surged in value but collapsed by nearly 90% within hours, causing substantial losses for investors. Accusations emerged that the project involved fraudulent practices by its creators.

Political and Economic Impact

Milei deleted his endorsement post and stated he had been unaware of the cryptocurrency’s vulnerabilities. However, public opinion surveys reveal widespread concern. A poll by CB Consultora showed that 77% of respondents believe the judiciary should investigate Milei’s ties to $LIBRA’s developers.

Additionally, 72.8% think trust in his presidency has declined following the incident. Despite this backlash, Milei retains strong support among his core voters. Analysts report that only 10% of his base appears affected by recent events.

Meanwhile, opposition parties remain divided, limiting their ability to challenge his administration effectively. Economically, Argentina has shown solid signs of recovery under Milei’s leadership.

Monthly inflation has dropped to 2.7%, and fiscal austerity measures have led to a budget surplus for the first time in over a decade. However, these gains remain fragile amid political uncertainty and public discontent.

As Argentina approaches its October midterm elections, the suspension of PASO and debates surrounding $LIBRA highlight deep divisions in its political landscape. These developments will likely shape both the country’s governance and its economic trajectory in the months ahead.