- Argentina’s government has confirmed that contracts can now be made using Bitcoin, demonstrating a commitment to cryptocurrency adoption.
- President Javier Milei supports Bitcoin as a solution to economic challenges and corruption in financial systems.
- Argentina’s endorsement of Bitcoin in contracts may encourage wider cryptocurrency use, potentially impacting global adoption.
Argentina’s newly appointed foreign minister, Diana Mondino, has officially announced that the country “ratifies and confirms” the use of Bitcoin in contracts, marking a significant step towards cryptocurrency adoption in the nation.
This move follows the election of President Javier Milei, known for his crypto-friendly stance, and reflects a growing recognition of cryptocurrencies as a legitimate means of conducting financial transactions.
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In her statement, Mondino declared, “We ratify and confirm that in Argentina you can agree on contracts in Bitcoin,” highlighting the government’s willingness to embrace digital currencies as a form of payment.
Furthermore, Mondino emphasized the inclusivity of this decision, stating that it extends beyond Bitcoin to encompass “any other kind of crypto.” She even cited the possibility of unconventional assets being used in contracts, such as “kilos of steer or liters of milk,” indicating a broad spectrum of acceptable payment methods.
While Mondino did not provide specific details about new government measures related to cryptocurrencies, this early nod to the world’s largest cryptocurrency aligns with President Milei’s vision for addressing Argentina’s economic challenges. The nation has grappled with severe issues like hyperinflation and currency devaluation.
“Milei sees Bitcoin as a crucial tool in countering the inefficiencies and corruptions of centralized financial systems,” noted Grayscale Investments in a recent report. The potential integration of Bitcoin into Argentina’s economic landscape could have far-reaching implications, potentially catalysing the adoption of cryptocurrencies worldwide.
Article 766: The Legal Foundation
Intriguingly, Mondino cited “Article 766” as the legal foundation for this decision, emphasizing that the debtor must deliver the designated currency, whether it’s legal tender in Argentina or not. This flexibility opens the door to a diverse array of payment options.
Tackling Inflation: The Driving Force
One of the driving forces behind this historic move is Argentina’s ongoing battle with staggering inflation, currently hovering around a staggering 160%. President Milei, often known for his bold rhetoric and unorthodox approaches, has introduced what he calls the “chainsaw” plan. This comprehensive package comprises over 300 measures targeting various sectors, from real estate to mining, and even includes the privatization of national companies like YPF and Aerolíneas Argentinas.
While President Milei has referred to Bitcoin as a “natural reaction against the central bank scammers,” he has not yet detailed specific plans for regulating or adopting cryptocurrencies on a nationwide scale.
The advocate voice: Diana Mondino
Mondino has emerged as one of the most vocal proponents of cryptocurrency within Milei’s cabinet, consistently advocating for Bitcoin and other digital assets. Her vision revolves around the freedom of currencies, championing the idea that individuals should have the liberty to make contracts in Bitcoin if they choose to do so.