LIBRA crashes! Did the government get "cut" only to be cut by the voters themselves? Argentine President Milei suffers a local defeat.

Argentina's most controversial populist president, Javier Milei, rarely admitted defeat after suffering a crushing loss in the elections this week in the province of Buenos Aires, but still stated firmly that his economic reform agenda “will not take a step back.” This leader, known for campaigning with a chainsaw, has long claimed to “cut out” corrupt and inefficient government agencies and to carry out sweeping reforms of Argentina's bureaucratic system. Now, voters have expressed their strong dissatisfaction with Milei at the ballot box, and this self-proclaimed “anarcho-capitalist” president is facing the greatest political pressure of his term.

The electoral defeat has triggered political turmoil.

In the provincial elections in Buenos Aires this Sunday, the Libertarian party (La Libertad Avanza) led by Milei received only about 34% of the votes, far behind the leftist Peronist opposition's 47%. This defeat is seen as a significant referendum on his reform plans and has sounded the alarm for the upcoming congressional midterm elections next month. “We have encountered a setback, and we must responsibly accept it,” Milei admitted to his supporters after the election, calling it an “obvious failure,” but he quickly added, “Our economic war has just begun, and compromise is not an option.”

Miley and Trump ally to create an alternative political axis.

Javier Milei is one of the most enthusiastic supporters of U.S. President Donald Trump in Latin America, and he is also the first foreign leader to visit Mar-a-Lago after Trump returned to the White House. This international alliance strategy not only highlights Milei's ideological stance but also symbolizes his opposition to Argentina's traditional political establishment and his confrontation with global liberals.

Chainsaw reforms have attracted global attention.

Since taking office, Milei has implemented a series of austerity and free-market oriented reforms, including significant cuts to energy and transportation subsidies, the layoff of tens of thousands of government employees, a freeze on public construction, and keeping wages and pensions below inflation levels. He claims that these “chainsaw” reforms are aimed at cutting off the sources of corruption and deficit accumulation.

Self-styled as a Bitcoin supporter, becoming a hot topic president.

Javier Milei differs from traditional politicians as he has been a long-time advocate of cryptocurrency, particularly Bitcoin. He has publicly stated, “Bitcoin is a tool to fight against the plunder of central banks,” and has repeatedly hinted at the gradual legalization of Bitcoin as a means of payment. Although Argentina has not yet made Bitcoin legal tender like El Salvador, Milei has indeed promoted a series of financial liberalization measures, including allowing contracts to be signed in Bitcoin and other cryptocurrencies. These policies have garnered support from some youth and the middle class in a country where the inflation rate once exceeded 200%.

After the implementation of contraction policies, Argentina successfully reduced the inflation rate to 45% and achieved a budget surplus for the first time in 20 years. In the third quarter of 2025, GDP also increased by 3.9% quarter-on-quarter, indicating a certain degree of economic stabilization. Milei believes that this is an initial result of his “de-nationalization and decentralization” financial strategy.

However, critics point out that the cost of these reforms is extremely high, with Argentina's poverty rate soaring to 53% by 2025. The society feels dissatisfaction and despair over the cuts in public health, education, and retirement security. In addition, some cryptocurrency projects promoted by Milei have also sparked controversy.

In February 2025, a crash of the $LIBRA cryptocurrency, endorsed by the government, led to tens of thousands of investors losing all their investments, triggering a wave of impeachment calls against Milei from the opposition, accusing the president of involvement in political cover-ups and financial fraud. Although Milei denied all wrongdoing, the incident severely damaged the credibility of his crypto-financial reforms.

Amid scandals, public approval ratings plummet.

Milei is also facing bribery and position-selling scandals involving his younger sister, Karina Milei, who is also the director of the presidential office. Despite his strong denial and labeling it as “the most corrupt political trick,” polls show that his approval rating has dropped to 39%, and his political prestige continues to decline.

Is the chainsaw dull? Can Bitcoin save it?

From the very beginning, wielding a chainsaw and vowing to “dismantle the deep state,” to now facing setbacks in politics, economics, and cryptocurrency finance, Milei's path of reform is undergoing an unprecedented reality test. Bitcoin and the free market once paved his way to the presidential office, but they may now become the core issues of his governance crisis. Whether he can stabilize his ruling foundation in next month's midterm elections or follow the path of “disillusionment after the populist frenzy” will determine the fate of Argentina's economic future.

This article LIBRA crashed! Did the government get “cut” and end up getting cut by voters instead? Argentine President Milei suffered a local defeat, first appearing in Chain News ABMedia.