Libra Scandal Shakes Argentina: Javier Milei Faces Declining Public Trust

The Milei approval rating has taken a hit after the Libra scandal, with recent Argentine political polls showing a decline in public trust. While surveys show combined results, growing economic issues and opposition pressures add to the uncertainty surrounding the upcoming elections. The controversy around the scandal has triggered debates on Milei’s leadership, raising questions about his ability to manage economic instability. As Argentina moves nearer to the October elections, the political landscape remains tense, and analysts are divided over whether or not President Javier Milei can recover his support before voters head to the polls.

Public Distrust Grows After Libra Scandal

The Libra scandal has substantially affected Milei’s approval rating, with 57.6% of Argentinians expressing distrust in a recent Zuban Córdoba poll. Only 36% support him, while 6.4% stay neutral. The poll reflects a growing negative sentiment, which has been increasing progressively in recent months. The scandal has put Milei under great scrutiny, and the ongoing investigations into the fraudulent crypto scheme have further hampered public sentiment.

Javier Milei’s government has faced rising criticism, with the national disapproval rate currently at 58%. Analysts consider the scandal to have intensified doubts about his administration’s ability to manage the country’s financial and political landscape. The controversy has not only marked Milei’s credibility but has additionally raised concerns about the government’s regulatory oversight in financial matters. 

Conflicting Polls Show Mixed Reactions

Despite the sharp decline in the Milei approval rating, some Argentine political polls recommend a more divided public opinion. While the University of San Andrés survey recorded a 45% approval rating, a separate Morning Consult poll (Feb 27–March 5) mentioned 62.4% approval even after the scandal. The difference between these polls suggests that while many have lost trust in Milei’s leadership, others continue to support his financial reforms.

These differing results indicate that whilst Javier Milei still holds a considerable support base, his overall standing remains uncertain. Some analysts argue that Milei’s strict attitude on economic reforms gets the support of a segment of voters who prioritise fiscal policies over political controversies. However, with opposition parties leveraging the scandal to gain support, Milei’s potential to maintain his base will be critical in the coming months.

Milei’s Response and the Market Impact

Amid the controversy, Javier Milei has denied promoting the Libra scandal, claiming in a Feb. 14 X post that he merely “spread the word” rather than endorsing it. However, his comments came under inquiry after the LIBRA token skyrocketed to a $4.6 billion market cap before dropping 94% within hours. The surprising collapse of the token left many investors at a loss and damaged Milei’s reputation in the economic sector.

It all began with this post at 5:01 PM ET from Javier Milei.

As seen during President Trump's memecoin launch, the first hour was full of speculation:

Was this a hack or a real launch?

It turned out to be real as multiple other Argentinian politicians posted the news. pic.twitter.com/cL0ZQgxtCB

— The Kobeissi Letter (@KobeissiLetter) February 15, 2025

The opposition party even called for Milei’s impeachment, although no significant action has been taken. The scandal has intensified worries among investors, as regulatory inspection over crypto-related activities will increase in Argentina. Financial experts warn that the incident could lead to strict regulations on digital assets, impacting Argentina’s growing crypto market. Meanwhile, the public stays divided over whether Milei should take full accountability for the scandal or if he was merely a sufferer of misinformation.

Election Prospects and Economic Concerns

Despite the controversy, Javier Milei’s La Libertad Avanza party remains the main opponent for the upcoming October elections, with 36.7% support, while Unión por la Patria stays at 32.5%. However, economic concerns continue to be strong in his administration. Milei has campaigned on guarantees of economic reform, but rising inflation and financial instability have broken down public patience.

Polls indicate that only 43% of Argentinians believe Milei has effectively managed inflation, while 63% oppose his negotiations for an IMF loan. These economic problems could play a decisive role in shaping voter sentiment in the coming months. If Milei fails to solve these concerns effectively, he could face an even steeper decline in approval ratings. Economic analysts recommend that his handling of Argentina’s financial crisis, as a substitute for the Libra Scandal, will determine his political future.