Argentina’s grassroots crypto community is working to establish a “Blockchain Valley” in Buenos Aires, aiming to take advantage of President Javier Milei’s favorable view toward cryptocurrency. The movement, called “Crecimiento” (Growth), has gathered a small but influential following of 500 members, including prominent names in Argentina’s crypto ecosystem such as Diego Gutiérrez (Co-founder of Bitcoin Layer 2 Rootstock), Elian Alvarez (General Partner of Ripio Ventures), and Marcelo Cavazzoli (CEO and Co-founder of Lemon Cash).

Presidential Backing and Community Goals

According to Crecimiento’s core team, they have secured backing from advisors to the nation’s new libertarian president, Javier Milei. Santi Cristóbal, Co-founder of Solow, an Argentinean crypto education platform and Crecimiento member, emphasized the unique opportunity presented by the current political climate.

Crecimiento has outlined a three-pillared vision for Blockchain Valley:

1. On-Chain Adoption: Attract between 5 million and 10 million people to the blockchain with innovative products.
2. Tech Ecosystem Expansion: Grow Argentina’s tech startup ecosystem tenfold.
3. Regulatory Stability: Ensure multi-decade stability for startups through favorable regulatory frameworks.

The organization aims to coordinate with Argentina’s crypto-friendly government to provide incentives for the industry, including tax breaks, funding, and streamlined business processes.

Economic Potential and Regulatory Support

During his presidential campaign, Milei championed Bitcoin as a tool for financial freedom. While he has not made official statements on crypto since taking office, Crecimiento has had promising meetings with top government representatives, who are warming to the idea of creating a crypto-friendly economic zone in Buenos Aires.

María Milagros Santamaría, a Web3 lawyer and consultant involved with Crecimiento, noted that regulators are interested in concrete proposals rather than vague ideas. This interest is crucial given Argentina’s current economic struggles, with over 55% of the population living below the poverty line and rampant inflation.

Building on Argentina’s Crypto Talent

Despite economic challenges, Argentina has developed a robust crypto talent pool. With a 5% Web3 adoption rate and successful projects like OpenZeppelin and Decentraland, the country is well-positioned to become a leading crypto hub. Everyday Argentines use wallets like Muun for transactions, showcasing widespread crypto adoption.

Crecimiento aims to capitalize on this talent and favorable regulatory environment to foster a thriving crypto ecosystem from the ground up, contrasting with top-down approaches seen in other countries.

Private Sector Involvement

Protocol Labs, a private tech incubator supporting major crypto names like Consensys and Starkware, is helping spearhead the initiative. James Tunningley, ecosystem architect for Protocol Labs, emphasized the long-term commitment to supporting startups at various stages with significant capital investment.

Short-Term and Long-Term Goals

In the short term, Crecimiento plans to establish a pop-up crypto city in Buenos Aires in August, providing a collaborative space for builders to experience a crypto economic zone. Long-term goals include raising $2.5 million to $3 million in initial funding and establishing a two-year co-working hub for 300 people, along with bootcamps and accelerators.

Global Comparisons and Future Prospects

Argentina’s Blockchain Valley aims to join the ranks of global tech hubs like Switzerland’s Crypto Valley Zug, Dubai’s Silicon Oasis, and Malaysia’s Digital Innovation Zone. These hubs have attracted significant investments and talent, setting a precedent for Argentina’s potential success.

With the pieces falling into place, Argentina’s blockchain industry and supportive government could turn Buenos Aires into a Crypto Silicon Valley. As President Milei’s motto goes, “Long live freedom, damn it,” this initiative could indeed thrive under such a pro-crypto sentiment.