Argentina Greenlights Bitcoin for Contract Settlements in Economic Overhaul

Argentina has officially paved the way for the use of Bitcoin and other cryptocurrencies in contracts and payments, as announced by the country’s Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino. The revelation came through a post on X (formerly Twitter) on December 21, following the approval of the ‘Bases for the Reconstruction of the Argentine Economy’ decree by the government on December 20.

Although the economic reform and deregulation decree did not explicitly mention cryptocurrencies, it included provisions granting debtors the option to settle payments in currencies not recognized as legal tender in Argentina. Mondino clarified in her post that the decree affirms the settlement of contracts in Bitcoin and any other cryptocurrencies, subject to certain conditions.

Additionally, the decree provides a broad spectrum of choices for settling contracts, including unconventional options like liters of milk or steers. Notably, Article 1196 of the decree emphasizes the freedom of individuals to specify the currency type for bonds or security deposits, extending to foreign currencies and not explicitly excluding cryptocurrencies.

President Javier Milei, who appointed Mondino as the foreign minister after winning the election against then-finance minister Sergio Massa, has been viewed by many as a proponent of crypto adoption in Argentina. Milei assumed office during a period of rampant inflation in the country, and the economic decree, following his inaugural national address, outlines measures to address Argentina’s economic challenges. President Milei expressed his sentiments on the decree via a tweet, exclaiming, “Long live fucking freedom.”

It’s noteworthy that President Milei, while previously referring to Bitcoin as a movement toward returning money to the private sector, has not publicly discussed digital assets since taking office. The developments in Argentina signal a significant step towards integrating cryptocurrencies into the country’s economic landscape.