While some people have doubted the commitment of the new libertarian president Javier Milei regarding the adoption of Bitcoin in the country, a new set of laws seems to dispel the doubt.
Indeed, Javier Milei has issued an executive order containing 300 deregulations aimed at reducing, or even eliminating, administrative barriers between businesses. Bypassing Congress , the "anti-establishment" president seeks to dismantle decades of state controls to facilitate the privatization of companies. These new regulations have also opened the door to accepting Bitcoin and other cryptocurrencies (including Sablecoins) as legitimate forms of payment.
Thus, the Minister of Foreign Affairs of Argentina, Diana Mondino, confirmed that it will now be possible for all operators in the country to conclude contracts in Bitcoin or any other crypto.
She added: "We ratify and confirm that in Argentina, contracts can now be concluded in Bitcoin. And also in any other cryptocurrency and form, such as kilograms of meat or liters of milk. Article 766 - Obligation of the debtor. The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not."
However, Congress could reject Milei's decree with a majority vote in each chamber. However, it is enough for only one chamber to approve it for the decree to be considered valid and to enter into force.
Private contracts denominated in Bitcoin
Private contracts denominated in Bitcoin mean that merchants will now be able to accept payment in the cryptocurrency of their choice. Thus, a company can demand to be paid in dollars, bitcoin or other cryptocurrencies and can therefore display the price of its products in bitcoin.
This measure is close to the stated desire of the Salvadoran president who made Bitcoin legal tender in the country in 2021. With the exception that for Argentina, the introduction of Bitcoin contracts does not rule on the fact that the currency will be the official currency of the country. Indeed, accepting payments in cryptocurrencies including Bitcoin does not mean that bitcoin is considered a national currency of the country. This means that bitcoin is accepted in the same way as other cryptocurrencies but that the country will not (for the moment at least) have a monetary reserve in bitcoin as is the case in El Salvador, for example.
President Milei presented these actions as emergency measures aimed at "dismantling" the Argentine economy, which has been severely affected by years of high inflation and repeated economic crises. The country recorded an annualized inflation rate of 143% in October , and it could rise further in the coming months.
For the leaders of Milei's government, this decision to accept private contracts in currencies other than the Argentine peso will help restore autonomy to local businesses. Even more, this will allow us to take advantage of new opportunities on an international scale.
Thus, the objective of removing the peso from the Argentine economy seems to be becoming effective.
Bitcoin as an opening of opportunities
By allowing the creation of private contracts denominated in Bitcoin, Argentina is taking another step toward the adoption of Bitcoin in the country. This opens up new financing options that could serve as leverage to address the country's astronomical debt, which has reached $45 billion with the IMF , among others. The institution has welcomed the devaluation of the peso and the decision to reduce spending, but some skeptics doubt the long-term effectiveness of deregulation.
Thus, Javier Milei, who would like to establish the dollar as legal currency in the country (even more so than bitcoin), shows here a certain interest in Bitcoin, even if it remains timid.
It will be interesting to observe which type of cryptocurrency is most in demand among merchants in order to better assess the state of hyperbitcoinization in the country in the months and years to come…
Learn more about ZoneBitcoin
Subscribe to get the latest posts sent to your email.
