The powers of a president to promote something of a private nature raise questions, stated Mexican President Claudia Sheinbaum, reminding that governments must serve the people and the private initiative should focus on businesses with social content and responsibility.
The controversy arose when Argentine President Javier Milei promoted a cryptocurrency project called $LIBRA on social media, based on blockchain technology. After being posted for about five hours, Milei deleted the publication due to the risk of a scam.
Sheinbaum warned about the seriousness of an alleged fraud associated with the promotion of cryptocurrencies carried out by a president. Milei apologized and justified his initial publication as support for a "private venture" without having a direct relationship with it.
The cryptocurrency $LIBRA, promoted by Milei, is considered a "meme coin" without real economic backing. Its value significantly increased after the recommendation from the Argentine leader, moving large amounts of money only to collapse afterwards, which could indicate the presence of a Ponzi scheme.
If a possible fraud is confirmed, authorities will have to act accordingly. The lack of regulation in the world of cryptocurrencies allows the creation of digital assets without foundation, as is the case with $LIBRA. It is crucial for political leaders to avoid promoting private initiatives that could compromise their institutional integrity and public trust.
The "meme coin" is just one of the thousands of existing pseudo cryptocurrencies, created with the purpose of generating quick profits through questionable practices. Experts have highlighted the importance of regulating such digital assets to prevent fraud and protect investors.
