Argentina's Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, announced on X (formerly Twitter) that the recent "Bases for the Reconstruction of the Argentine Economy" decree, issued by the government on Dec. 20, would allow the use of Bitcoin and other cryptocurrencies in contracts and for payments under specific conditions. The decree, seemingly focused on economic reform and deregulation, does not explicitly mention crypto but includes provisions giving debtors the option to settle contracts in currencies not recognized as legal tender in Argentina.
Decree Overview: The economic decree, framed as a strategy for reconstructing the Argentine economy, introduces measures aimed at addressing economic concerns in the country. While not explicitly highlighting cryptocurrency, the decree provides a framework allowing the use of Bitcoin and other cryptocurrencies in contractual agreements and payments, subject to certain conditions. This marks a notable development in Argentina's approach to currency usage and economic policies.
Bitcoin and Crypto Inclusion: Minister Mondino emphasized that the decree ratifies the acceptance of Bitcoin for settling contracts in Argentina, and the scope extends to other cryptocurrencies. This signals a regulatory shift acknowledging the role of digital assets in the country's economic landscape. The decree's inclusive approach also allows for unconventional forms of settlement, such as using liters of milk or steers, providing a diverse set of options for economic transactions.
Freedom of Currency Choice: Key provisions in the decree affirm the freedom of individuals to choose the type of currency used in transactions, referencing foreign currencies explicitly. While the focus is on foreign currencies, the decree does not expressly exclude cryptocurrencies, granting parties the liberty to specify the currency type for bonds or security deposits and the method of reimbursement upon the conclusion of leases.
President Javier Milei's Influence: The economic decree follows the election victory of Argentine President Javier Milei, who appointed Diana Mondino as the foreign minister. Milei's win was perceived positively within the crypto space, suggesting a potential shift toward greater cryptocurrency adoption in Argentina. The president's commitment to economic freedom was underscored by a tweet celebrating the passage of the decree with the phrase "Long live f---ing freedom."
Bitcoin's Role in Economic Vision: While President Milei has not publicly addressed digital assets since taking office, his past statements have characterized Bitcoin as a movement toward returning control of money to the private sector. The inclusion of Bitcoin in the recent economic decree aligns with the broader vision of fostering economic flexibility and embracing diverse forms of currency for transactions within Argentina.
Conclusion: Argentina's economic decree, as announced by Foreign Minister Diana Mondino, signals a progressive stance on cryptocurrency adoption by acknowledging the use of Bitcoin and other digital assets in contracts and payments. The inclusive framework and freedom of currency choice outlined in the decree reflect a willingness to explore diverse forms of transactions, potentially paving the way for increased crypto integration in Argentina's economic landscape. As the country takes steps toward economic reconstruction, the acceptance of Bitcoin underscores its growing relevance as a recognized means of financial exchange within the nation.
(TURNER WRIGHT, COINTELEGRAPH, 2023)