Argentina Opens the Door for Bitcoin Contracts
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In a groundbreaking move to address its economic challenges, Argentina has embraced cryptocurrency for contractual agreements.
Economy Minister Diana Mondino’s announcement on December 21, closely following the government’s decree titled “Bases for the Reconstruction of the Argentine Economy,” permits contracts to be executed in Bitcoin, the world’s leading cryptocurrency.
Ratificamos y confirmamos que en Argentina se podrán pactar contratos en Bitcoin.
— Diana Mondino (@DianaMondino) December 21, 2023
While the decree, which sanctions the use of non-legally tendered currencies by the Central Bank, didn’t explicitly mention Bitcoin, Mondino clarified that it falls within the permitted category.
According to Samson Mow, the decree opens the door for other unconventional forms of assets like cows and liters of milk to be utilized in contractual settlements.
Argentinian Minister of Foreign Affairs spoke about the approval of #Bitcoin for payments, and then mentioned separately that you could use “crypto” along with cows and litres of milk too. https://t.co/m0SwFWiIMC
— Samson Mow (@Excellion) December 21, 2023
This initiative aligns with the vision of newly elected President Javier Milei, who secured victory on November 19, championing free markets and individual liberties. Milei, a fervent supporter of Bitcoin, views the cryptocurrency as a means to restore money to its original creator, the private sector.
Argentina, grappling with a severe economic crisis marked by 161% inflation and a sharp devaluation of the peso against the US dollar, has witnessed a surge in Bitcoin adoption.
As the local currency lost half its value in December, Bitcoin has emerged as a preferred store of value and a hedge against inflation for many Argentinians. Coingecko reports a doubling of Bitcoin’s price in pesos over the past month, soaring to a record high of 35 million pesos per coin.
Will Argentina Go the El Salvador Route With Bitcoin?
Meanwhile, analysts speculate that Argentina might follow in the footsteps of El Salvador, the pioneer in adopting Bitcoin as legal tender in September.
JAN3 CEO Samson Mow, a notable figure in the crypto space, commented on the diverse paths countries can take, stating, “Not every country has to make Bitcoin legal tender; each country will have its own unique path. All roads lead to BTC.”
Argentina’s move signals a significant shift, showcasing a strategic embrace of cryptocurrency amid challenging economic conditions.
