ZoneBitcoin EditorialIf some people 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 clear the doubt.
Indeed, Javier Milei has issued a decree consisting of 300 deregulations aimed at reducing or even eliminating administrative barriers between commercial agents. Without going through Congress, the "anti-system" president then wants to eliminate decades of state controls in order to authorize the privatization of companies. Through these new regulations, the possibility of accepting bitcoin and other cryptocurrencies (including sablecoins) as legitimate means of payment has been stated.
Thus, the Minister of Foreign Affairs of Argentina Diana Mondino has confirmed that from now on it will be possible to conclude contracts in Bitcoin or any other crypto for all operators in the country.
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 seriously affected by years of high inflation and repeated economic crises. The country has recorded an increase in annualized inflation to 143% in October and could increase 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 a further step towards 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 IMFIncluding. The institution also welcomed the devaluation of the peso and the decision to cut spending but some skeptics doubt the effectiveness of deregulation in the long term.
Thus, Javier Milei who would like to establish the dollar as legal tender in the country (even more than bitcoin) shows here a certain interest in Bitcoin, even if it remains timid.
It will be interesting to observe the type of cryptocurrency that will be more in demand among traders in order to better judge the state of hyperbitcoinization of the country, in the months and years to come…
