- Argentina Foreign Minister Diana Mondino announced that financial contracts can now be denominated in Bitcoin.
- The announcement marks a significant advancement in Argentina’s crypto adoption.
- Argentina’s Bitcoin contract decision could boost cryptocurrency investment and innovation.
The government of Argentina has confirmed that financial contracts can now be denominated in Bitcoin.
Foreign Minister Diana Mondino announced the decision on social media: “We ratify and confirm that in Argentina contracts can be agreed in Bitcoin.”
Ratificamos y confirmamos que en Argentina se podrán pactar contratos en Bitcoin.
— Diana Mondino (@DianaMondino) December 21, 2023
The decision is based on Article 766 of the Argentine Civil Code. It states that the debtor must deliver the amount corresponding to the currency designated in the contract, regardless of whether the currency has legal tender in the Republic.
The decision is a victory for cryptocurrency advocates in Argentina since it will likely lead to increased investment and innovation in the cryptocurrency sector.
It’s also one of the first major decisions made under Argentinian President Javier Milei, who was sworn in on Sunday, Dec. 10 with a promise of radical change for the nation’s troubled economic landscape.
Argentina has been a relatively friendly jurisdiction for cryptocurrencies in recent years.
In 2021, the country’s central bank issued regulations that allowed banks to provide services to cryptocurrency exchanges.
Impact of President Javier Milei’s Policies on Argentina
The election of President Javier Milei, known for his market-friendly stance, has been a catalyst for this progressive shift towards crypto adoption in Argentina.
Mondino’s appointment as foreign minister and the subsequent decree are in line with Milei’s vision for Argentina’s economic overhaul.
Facing pressing inflation issues, Milei’s administration has actively sought solutions to stabilize and revitalize the Argentine economy.
The economic decree follows President Milei’s national address, where he outlined measures to tackle Argentina’s economic challenges.
His reference to Bitcoin as a movement towards “the return of money to its original creator, the private sector,” underscores his administration’s positive outlook on digital assets.
While he has not publicly commented on digital assets since taking office, his administration’s actions indicate a strong inclination towards embracing cryptocurrencies.
In essence, Argentina’s decision to legalize the use of Bitcoin and other cryptocurrencies for contracts and payments marks a significant milestone in the country’s economic policy.
This move not only positions Argentina as a leader in digital asset adoption but also reflects a broader shift in global attitudes towards cryptocurrencies.
As the world increasingly recognizes the potential of digital currencies, the country’s pioneering approach could serve as a model for other nations looking to modernize their economic systems.
With this decree, Argentina steps into a future where digital currencies play a crucial role in economic transactions, signaling a new era of financial innovation and flexibility.