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Argentina Approves Bitcoin for Contracts
The government of Argentina has taken a major step to embrace cryptocurrency by allowing Bitcoin to be used legally for contracts within the country. This confirmation comes in December 2023 shortly after the election of President Javier Milei.
Argentina’s Foreign Minister Confirms Bitcoin’s Legal Status
On December 21, 2023, Argentina’s Minister of Foreign Affairs, Diana Mondino, stated on Twitter that Bitcoin can now be used legally in contracts:
“We ratify and confirm that in Argentina contracts can be agreed in Bitcoin.”
Mondino made this announcement one day after Milei’s government passed the “Bases for the Reconstruction of the Argentine Economy” decree on December 20, 2023. While not naming Bitcoin specifically, this decree provided for the use of non-legal tender currencies.
President Milei’s Pro-Bitcoin Stance
President Javier Milei, elected in November 2023, has repeatedly expressed positive views about Bitcoin:
- “Bitcoin represents the return of money to its original creator, the private sector.”
- “Bitcoin prevents politicians from robbing you through inflation.”
Clearly, President Milei understands Bitcoin’s potential to empower citizens and bypass institutions like central banks. His election likely prompted this move to legalize Bitcoin.
Argentina has suffered from high inflation, currently around 161%, leading to rampant devaluation of the Argentine Peso (ARS). As a result, Bitcoin prices in ARS hit record highs in 2023.
Surging Bitcoin Prices in Pesos
On December 12, 2023, President Milei announced a 50% devaluation of the ARS from 400 to 800 per US Dollar. This currency instability has caused a 20% Bitcoin price jump in December 2023.
Comparisons to El Salvador
With Milei’s pro-Bitcoin stance, rumours are circulating that Argentina may follow El Salvador to make Bitcoin legal tender.
Interestingly, on the same day as Argentina’s announcement, El Salvador passed a law granting citizenship to crypto investors without a minimum donation.
The Impact of Bitcoin Contract Legality
By allowing Bitcoin for contracts, Argentina has progressed towards full adoption. Potential benefits include:
- Increased financial access for the unbanked
- Stable store of value amidst currency volatility
- Less reliance on government monetary policy
- Growth of crypto sector investment and talent
- Legitimization of Bitcoin for payments
While details remain unsettled, Argentina has strongly signalled support for normalizing Bitcoin’s role in finance. The country could emerge as a regional leader in crypto innovation.
Frequently Asked Questions( FAQs)
Q: What did Argentina announce about Bitcoin?
A: Argentina announced that Bitcoin can now legally be used for contracts within the country.
Q: When did Argentina make this announcement?
A: The announcement was made on December 21, 2023, by Foreign Minister Diana Mondino.
Q: Why did Argentina decide to allow Bitcoin for contracts?
A: Argentina likely made this decision due to new President Javier Milei’s pro-Bitcoin stance and the need for financial stability amidst rampant inflation.
Q: Does this mean Bitcoin is legal tender in Argentina?
A: No, Bitcoin is not officially legal tender yet. This announcement just allows it to be used for contracts.
Q: Could Argentina adopt Bitcoin as legal tender in the future?
A: Possibly, since the new President supports Bitcoin. Argentina may follow El Salvador which made Bitcoin legal tender.
Q: How did the market react to Argentina’s announcement?
A: Bitcoin’s price jumped over 20% in December 2023 partly due to Argentina’s pro-Bitcoin stance.
Q: What does this move mean for Bitcoin adoption globally?
A: It is a major milestone showing Bitcoin’s increasing legitimacy. More countries could follow Argentina’s lead.
Watch The Web Story on this Topic : “How This Country Just Shook Crypto World ?“ :
Conclusion
Argentina’s embrace of Bitcoin for legal contracts marks a major milestone for cryptocurrency adoption in December 2023. The country appears poised to follow El Salvador in making Bitcoin an official legal tender with Milei as President. As real-world Bitcoin utility grows, its status as global decentralized money is further validated.
Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be construed as legal, financial or investment advice. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of CryptoWini
