Argentina Embraces Bitcoin for Contract Settlements

In a landmark decision, Argentina has announced that government contracts can now be settled using Bitcoin and other cryptocurrencies. Diana Mondino, Argentina’s Minister of Foreign Affairs, International Trade, and Worship, confirmed this development on December 21, 2023. This decision comes under the “Bases for the Reconstruction of the Argentine Economy” decree, passed on December 20, 2023. Although the decree did not explicitly mention cryptocurrencies, it includes provisions that allow debtors to make payments in currencies not recognized as legal tender in Argentina.

The decree gives individuals the freedom to choose their preferred currency type for bonds or security deposits and their reimbursement methods upon a lease’s conclusion.

This new economic policy aligns with the vision of Argentine President Javier Milei, known for his market-friendly stance. Milei, who appointed Mondino, aims to address the pressing inflation issues in Argentina. His advocacy for Bitcoin, seen as a step towards returning money to its original creator, the private sector, has been well received in the cryptocurrency community. However, since taking office, President Milei has not publicly discussed digital assets further.

This groundbreaking move by Argentina positions the country at the forefront of embracing digital currencies in government transactions. It highlights the increasing recognition of Bitcoin and other cryptocurrencies as viable alternatives for financial transactions, even at the governmental level. This decision could pave the way for other nations to consider similar measures, especially those facing economic challenges and looking for innovative solutions.