Argentina’s Economic Reform Decree Opens Door to Bitcoin Usage

President Milei's victory was seen as favorable for cryptocurrency adoption, and the decree allows diverse forms of payment.

Argentina's Economic Reform Decree Opens Door to Bitcoin Usage
Argentina's Economic Reform Decree Opens Door to Bitcoin Usage

Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship of Argentina, asserts that a decree legalizing the use of specific currencies in contracts and for payments would apply to Bitcoin.

In a message that was published on X (which was formerly known as Twitter) on December 21st, Mondino stated that a decree that appeared to be aimed at economic reform and deregulation would, under certain circumstances, permit the usage of Bitcoin and other cryptocurrencies within the country.

Although the decree titled “Bases for the Reconstruction of the Argentine Economy,” which was passed on December 20th, did not expressly reference cryptocurrency, it did include provisions allowing debtors to choose non-legally recognized currencies for payment.

In addition, the decree would make it possible to settle contracts with liters of milk or steers, as stated by Mondino. The decree has a number of clauses that provide individuals with the flexibility to pick the sort of currency that they use.

These laws mostly pertain to foreign currencies, although they do not explicitly restrict the use of cryptocurrency. Article 1196 of the decree stated that “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 conclusion of the lease.”

After Mondino’s victory in the election against Sergio Massa, who was serving as the country’s finance minister at the time, President Javier Milei of Argentina elevated him to the position of foreign minister.

Many in the industry interpreted Milei’s victory as a promising indication for the adoption of cryptocurrency in Argentina. Milei came to power in the midst of a nationwide rate of inflation that was pushing upward.

After delivering his first national address, he issued an economic decree that outlined a number of steps that would solve some of Argentina’s economic difficulties. The President of the United States tweeted, “Long live freedom,” in reference to the approval of the bill.

At one point in time, the President of Argentina referred to Bitcoin as a movement that is working toward “the return of money to its original creator, the private sector.” Since he took office, he has refrained from saying anything in public about digital assets.