Argentina’s new government has officially legalized the use of Bitcoin, with a new economic decree allowing citizens and businesses to settle contracts and make payments using cryptocurrencies. Diana Mondino, the country’s Minister of Foreign Affairs, International Trade and Worship, announced the news on Dec. 21.
Mondino stated: “We ratify and confirm that in Argentina contracts can be agreed in Bitcoin. And also any other crypto and/or kind such as kilos of beef or liters of milk… Art 766. – Obligation of the debtor. The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not.”
This decision comes as the country seeks to stabilize its economy and provide financial alternatives to its citizens. The financial system of the country is integrating cryptocurrency, not only offering its residents more options but also positioning itself as an innovator in the adoption and use of digital assets in Latin America.
The new decree allows individuals to choose their preferred mode of payment, including Bitcoin, regardless of if it is legally recognized tender. Legalizing cryptocurrencies is a strategy to combat the country’s economic issues, offering new avenues of financial transactions and investment as digital currencies become more globally prominent.
However, the move will present challenges for the government such as market stability and transaction security. The decision goes against the IMF’s guidance, which was part of their loan to the country and has urged the government to devalue the peso and take action against the use of cryptocurrency among the local population.
Despite this, Milei’s government will give citizens and businesses the freedom to choose their payment methods. The government has yet to make clear if they will issue new regulations or a new regulatory framework for the crypto-industry.
This move from Argentina could influence other nations, especially those facing economic instability, to consider cryptocurrencies as a viable financial tool. The decision will have a long-term effect on Argentina’s economy and the global financial landscape, and is a significant step forward in the evolution of digital currency.
