Argentina Allows Contracts to Be Settled in Bitcoin, Local BTC Price Surges to ATH
Argentina’s minister of foreign affairs has officially endorsed the use of Bitcoin in legally binding contracts within the country. Diana Mondino claimed that a decree legalizing the use of certain currencies in contracts and for payments would also apply to Bitcoin.
Argentina Accepts BTC
“We ratify and confirm that in Argentina, contracts can be agreed in Bitcoin,” she said on Dec. 21, following the election of crypto-friendly President Javier Milei on November 19.
However, the “Bases for the Reconstruction of the Argentine Economy” decree, passed on Dec. 20, did not specifically mention BTC. Nevertheless, it included provisions for currencies not recognized as legal tender, with Mondino confirming Bitcoin in her announcement.
The minister also mentioned that you could use “crypto” along with cows and liters of milk to settle contracts. JAN3 CEO Samson Mow commented: “Not every country has to make Bitcoin legal tender; each country will have their own unique path. All roads lead to BTC.”
Economic Background and BTC Surge
On Dec. 12, newly elected President Javier Milei announced a sharp devaluation of the local currency, the Argentine peso, by 50% from 400 to 800 against the US dollar.
Argentina has been suffering rampant inflation for years, and it currently stands at a painful 161%. As a result, BTC prices in local currency have surged to all-time highs this year.
To buy a Bitcoin in Argentinian pesos, you would need to part with 35 million of them. Local prices doubled in mid-December shortly after the currency valuation and now stand at an all-time high, according to Coingecko.
Future Prospects: Legal Tender?
The move has sparked rumors that Argentina may follow El Salvador in making Bitcoin legal tender in 2024. Milei has previously commented that Bitcoin “represents the return of money to its original creator, the private sector.”
El Salvador Passes Bitcoin Law
In related news, El Salvador has passed a law granting citizenship to Bitcoin investors. On Dec. 21, Congress approved a migration law granting expedited citizenship to foreigners who make BTC “donations” to government social and economic development programs, reported Reuters.
Moreover, the legislation does not specify any minimum “donation” requirement, though there is likely to be one.
According to the Bukele BTC investment tracker, El Salvador’s Bitcoin stash is now back in the green and with $122 million.