Argentina Pioneers Bitcoin Settlements for Contracts and Payments

Argentina Bitcoin

TL;DR

  • Foreign Minister Diana Mondino announces Argentina’s stance toward cryptocurrency adoption by embracing Bitcoin (BTC) for a contractual agreement.
  • Embracing the Bitcoin contract may boost cryptocurrency innovation and investment in Argentina.

Argentina Embraces Bitcoin for Contracts and Payments

Argentina’s Minister of Foreign Affairs, Diana Mondino, confirms Argentina’s stance on embracing Bitcoin (BTC) for contractual agreements.

Diana Mondino, the Argentina's minister for Foreign Affairs confirms the country's stand on embracing Bitcoin.
Argentina Minister of Foreign Affairs Diano Mondino | Source: BNN

In a social media post on X, Diana Mondino reiterated that this decree aims to reform the economy and deregulation. And allow the use of Bitcoin and other cryptos under certain conditions.

According to Mondino, the decree will allow settling contracts using liters of steers or milk. Other provisions of this decree may give people the freedom to choose the kind of currency they’ll use.

This is mainly referring to foreign currencies but not outrightly denying crypto.

The parties have the liberty to specify the amounts and the type of currency used for the bond or security deposit, as well as the method for its reimbursement upon the lease’s conclusion.

Article 1196 of the decree stated.

The announcement comes right on time when memecoins and new protocols innovations are reviving the Bitcoin ecosystem.

Bitcoin has seen a remarkable 161% year-date gain due to these happenings.

Sweeping Economic Reforms Knocks in Argentina

The basis for the reconstruction of the Argentine economy passed on December 20, 2023, didn’t mention cryptos.

Argentina welcomes the idea of formalizing Bitcoin dominated contracts.
Bitcoin and Argentina flag Colors | Source: Shutterstock

However, it included provisions that debtors could pay in currencies that aren’t recognized as legal tender.

The ground-breaking news shows Argentina’s willingness to accept and formalize contracts denominated in Bitcoin.

Moreover, it heralds an essential moment for legalizing digital assets in Argentina. In addition, it shows the country’s progressive approach to integrating Bitcoin into the country.

Mondino’s announcement comes shortly after the Argentinian president devalued the country’s currency.

The currency was sliced by over 50% as part of the bigger plan to provide economic shock therapy to mitigate a troubling financial crisis.

In addition, it would return freedom and autonomy to citizens. It would also dismantle various regulations that impede, hinder, and stop economic growth in the country.

Positive Side of Pro-Crypto Presidency

Pro-Bitcoin presidential aspirant Javier Milei won Argentina’s election in November 2023. He is a self-identified anarcho-capitalist. He previously spoke about shutting Argentina’s central bank in his manifesto, causing Bitcoin prices to surge.

Crypto investors and Argentinians alike saw Milei’s elective victory as a positive sign for cryptocurrency adoption in the country.

After his victory, Milei appointed Mondino as the foreign minister in favor of the then-finance minister Sergio Massa.

Milei took power when there was a pressing inflation in Argentina. The economic decree followed Javier’s first national address, which addressed over 300 measures to revitalize the country’s economy.

The decree will, in part, privatize various state-owned companies and shut down regulations on housing, land ownership, and more.

He once thought Bitcoin was the driving force behind the return of money to the private sector. After taking the rails of power, Milei has not publicly spoken about digital assets.

However, Mondino’s appointment and inclusion of crypto-friendly provisions in the decree show a positive step in the cryptocurrency stance.

Will cryptocurrency play a part in Milei’s scheme to dollarize Argentina’s economy?