Javier Milei faces crisis amid $Libra crypto-scandal

In Argentina, the first significant political crisis of Javier Milei's presidency occurred in February with the emergence of the $Libra crypto-scandal. Persistent public skepticism about Milei's capability to tackle the nation's pressing issues grew over the preceding months. This crisis intensified ahead of an important deal with the International Monetary Fund, during which Milei's administration coped with turbulent markets and increasing civil unrest from street protests. Due to these challenges, the President's approval ratings began to plummet just as midterm election campaigns were heating up. Before the IMF deal, Milei's administration faced accusations of amateurism as the political landscape shifted due to a series of missteps that made him look undisciplined, sparking worry about his coalition's viability. Despite this chaos, the deal with the IMF temporarily restored a sense of control for the government. Nevertheless, public sentiment about Milei's leadership remained shaky as inflation rates dropped and purchasing power was perceived to rise, albeit against a backdrop of economic contraction in key sectors like industrial manufacturing and construction. The fallout from the $Libra scandal was further complicated by accusations against members of Milei's inner circle, implicating his sister, Karina Milei, and key political advisor Santiago Caputo in allegations of improper financial dealings. As investigations began both domestically and internationally, the political pressure on Milei's government grew. This not only raised questions about the Milei administration's integrity but also reflected a broader unease regarding his leadership amid growing dissatisfaction within Argentinian society. Despite these challenges, Milei remained significantly supported among voters, as evidenced by his ratings compared to the weakening opposition, particularly Mauricio Macri's anti-Kirchnerite coalition, which faced its own internal strife. Even so, the political theatrics surrounding the $Libra scandal revealed underlying tensions and the precarious balance of power in Argentina's political environment. The investigations are likely to continue to resonate both at home and abroad, prompting expectations of further scrutiny into Milei’s administration going forward.