Investor unease triggered heavy outflows from Argentine markets. The central bank was forced to spend about $1.1 billion over three days to defend the peso \u2014 a hefty sum given that the country holds only about $20 billion in liquid foreign reserves, according to Bloomberg<\/a>. <\/p>\n Prices of Argentina\u2019s dollar bonds also sank amid concern that Milei\u2019s government was burning through cash at an unsustainable pace.<\/p>\n Amid the turmoil, US Treasury Secretary Scott Bessent said Monday that Washington considers Argentina \u201ca systemically important ally\u201d in Latin America, declaring that \u201call options for stabilization are on the table.\u201d <\/p>\n Measures under discussion include swap lines, direct currency purchases and the use of the Treasury\u2019s Exchange Stabilization Fund to buy Argentine government debt, Bessent said.<\/p>\n Bessent\u2019s remarks appeared to briefly restore investor confidence. According to the Financial Times<\/a>, Argentina\u2019s Merval stock index surged more than 9% in US dollar terms on Monday, though it is still down roughly 49% for the year. Dollar bonds also staged a sharp rebound.<\/p>\n Controversy, however, has followed Milei throughout his presidency. As Cointelegraph noted, his endorsement of LIBRA<\/a> \u2014 a cryptocurrency project widely criticized as a pump-and-dump scheme \u2014 triggered a federal investigation, though Milei later disbanded the task force<\/a> assigned to the case.<\/p>\n Related: LIBRA token creator fights class suit, citing lack of jurisdiction<\/a><\/p>\n Bitcoin Standard author\u2019s scathing critique\u00a0<\/p>\n As president, Milei has struggled to put Argentina\u2019s fiscal house in order. Economist Saifedean Ammous, author of The Bitcoin Standard, argued that Milei has in fact worsened the country\u2019s plight<\/a> through what he called a \u201cdebt and inflation Ponzi that is coming to an end.\u201d<\/p>\n Ammous faulted Milei for failing to rein in inflation, noting that the Treasury managed to sell its most recent bond auction only after hiking annual interest rates to an eye-watering 88%. He also accused the government of massively expanding the money supply despite Milei\u2019s libertarian branding.<\/p>\n On Friday, Ammous doubled down, pointing to the peso\u2019s collapse since Milei took office.\u00a0<\/p>\n Related: Tokenization could unlock capital markets growth in Latin America<\/a><\/p>\n Argentina\u2019s crypto adoption accelerates amid economic, political pressures<\/p>\n Although the peso operates within a managed currency band \u2014 with the dollar fluctuating between 948 and 1,475 \u2014 electoral uncertainty is pushing Argentines to seek refuge in stronger alternatives, particularly US dollar\u2013backed stablecoins<\/a>.\u00a0<\/p>\n \u201cElectoral uncertainty is driving Argentines to seek refuge in currencies stronger than the peso, such as the crypto dollar,\u201d Ignacio Gimenez, business manager at Lemon, a crypto trading app, told Cointelegraph.<\/p>\n Gimenez noted that Sept. 14 marked the platform\u2019s highest daily volume of stablecoin purchases since 2024.\u00a0<\/p>\n \u201cFrom mid-August to date, when the dollar began to rise, we noticed a predominance of stablecoin sales over purchases, except for the election peak. This shows that with a higher dollar, many Argentines today choose to sell and get pesos,\u201d he noted.<\/p>\n Asked about Milei\u2019s economic reforms and their impact on crypto adoption<\/a>, Gimenez said the government\u2019s fiscal adjustment is ongoing, and it\u2019s too early to judge the results. What remains clear, however, is that \u201cArgentines continue to turn to stablecoins as a real-time hedge against the political and economic uncertainty that characterizes our country.\u201d<\/p>\n Stablecoins in Argentina are not only used as protection against currency debasement, but also for international payments, remittances and access to decentralized finance.<\/p>\n![](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/01997269-6123-760a-8361-43a60aa95110.png\" "\\"\\"\/")
Source: Scott Bessent<\/a><\/p>\n![](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/01997269-65e9-788e-a253-bac693cd1ffb.png\" "\\"\\"\/")
Although inflation has fallen sharply since Milei took office in December 2023, Argentina\u2019s annual rate remains firmly in the double digits. Source: TradingEconomics<\/a><\/p>\n![](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/01997269-6890-7822-9581-73b34106334f.png\" "\\"\\"\/")
Source: Saifedean Ammous<\/a><\/p>\n![](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/01997269-6fbf-70d1-93f0-06a66a7cd56c.png\" "\\"\\"\/")
Amid political and economic turmoil, stablecoin purchases surge on the Lemon app. Source: Lemon<\/p>\n