Argentina's Economic Liberalization Paves Way For BTC Adoption
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Argentina's Foreign Minister Diana Mondino Posted On X Yesterday That Financial Contracts In The Country Can Be Denominated In BTC - The Announcement Comes A Day After President Javier Milei Signed A Decree Aimed At Liberalizing The Country’s Economy
On Wednesday, Argentina’s new President Javier Milei signed a decree ‘that will kick-start the process of economic deregulation that Argentina needs so much.’ These efforts are part of broader ‘shock-therapy’ programs Milei had promised. Last week, Economy Minister Luis Caputo announced deep budget cuts and a 54% devaluation of the Argentine peso.
Mondino’s two-part X post, written in Spanish, also noted that besides BTC, contracts can be denominated in any other cryptocurrency or other commodities such as cattle or milk. Mondino then quoted a specific part of the decree Milei had signed: ‘ARTICLE 766.- Obligation of the debtor. The debtor must deliver the corresponding amount of the kind designated, whether the currency is legal tender in the Republic or not.’
Last month, ahead of the presidential election, Diana Mondino, who served as Milei’s economic advisor before being given the role of foreign minister, spoke at a BTC conference in Buenos Aires. Asked if Argentina would make BTC legal tender if Milei were to be elected, Mondino responded that the administration would allow individuals to choose which currencies they transact in.
Takeaway: Last month, when Milei won Argentina’s presidential election, we noted that by allowing individuals to choose which currencies to use, Argentina could become a hotbed for crypto innovation. El Salvador’s national embrace of BTC has seen the country recognize it as legal tender, issue BTC denominated bonds, among other measures. Argentina may emerge as a different approach to the one employed in El Salvador. In that Argentina, authorities, via the liberalization of the economy, may create the conditions for bottom-up adoption of BTC.
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