Argentina has officially embraced the use of Bitcoin in contractual agreements, marking a significant milestone towards advancing its financial landscape.
Contracts in Bitcoin
This development was confirmed by Diana Mondino, the Minister of Foreign Affairs and International Trade, who took to X today, tweeting, “We ratify and confirm that in Argentina contracts can be agreed in Bitcoin.” The minister further clarified that other cryptocurrencies, as well as tangible assets such as kilograms of beef or liters of milk, are also permissible.
In making the announcement, Mondino referenced Article 766, which outlines the debtor’s obligation, stating, “The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not.”
This move is part of Argentina’s ongoing efforts towards economic reform and deregulation, creating an environment that encourages innovation and flexibility in financial transactions. It also comes on the heels of the so-called ‘Bases for the Reconstruction of the Argentine Economy’ decree, which was passed on Wednesday, repealing 300 decades-old laws linked to the country’s economic mess. Notably, while the decree refrained from explicitly referencing cryptocurrencies, it did incorporate provisions granting debtors the flexibility to settle payments using currencies not officially recognized as legal tender in Argentina.
That said, Thursday’s announcement closely follows Javier Milei’s triumph in Argentina’s presidential candidacy just a month ago. Milei, a staunch advocate of Bitcoin, has been outspoken in his critiques of the central bank, branding it a “scam” and underscoring Bitcoin’s potential to restore monetary control to the private sector. He has consistently argued that embracing Bitcoin can shield citizens from the adverse impacts of inflation associated with conventional banking systems.
That said, Argentina’s decision to endorse Bitcoin for contractual use highlights the nation’s dedication to unlocking the potential of cryptocurrency for fostering economic growth and innovation. Through the official recognition of Bitcoin as a legitimate form of contractual agreement, the government seeks to cultivate an environment that encourages heightened investment and business development within Argentina.
Moreover, though specific details regarding implementation and legal intricacies remain pending, Mondino’s announcement signifies a crucial stride in legitimizing Bitcoin within Argentina’s formal legal framework. This move has garnered widespread support from the crypto community, with some speculating that Argentina might follow in the footsteps of El Salvador and soon designate Bitcoin as legal tender.