Argentina Integrates Bitcoin to Legal & Economic System as Confirm by Diana Mondino
In a landmark announcement, Argentina’s Foreign Affairs Minister, Diana Mondino, confirmed its commitment to integrating Bitcoin into its legal and economic systems. This decision marks a significant shift in Argentina’s approach to digital currencies and could have far-reaching implications for the nation’s economy and legal framework.
Minister Diana Mondino’s statement indicates the Argentine government’s readiness to accept not only Bitcoin but also other cryptocurrencies and tangible assets like beef and milk in legal contracts. This clearly shows the government’s flexible and progressive stance towards diverse forms of currency and trade commodities.
How the Announcement Was Made?
In a Twitter post, Diana Mondino said, “We ratify and confirm that in Argentina, contracts can be agreed in Bitcoin. And also any other crypto and/or species such as kilos of a steer or liters of milk.”
“Art 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,” she added.
Ratificamos y confirmamos que en Argentina se podrán pactar contratos en Bitcoin.— Diana Mondino (@DianaMondino) December 21, 2023
The legal basis for this move is rooted in Article 766, which obliges debtors to fulfill their obligations in the currency specified in the contract, irrespective of its status as legal tender in Argentina. This lawful provision paves the way for Bitcoin and other cryptocurrencies to be used in contractual agreements, offering more versatility and options in financial transactions.
The timing of this announcement is noteworthy, coming shortly after Javier Milei, a vocal Bitcoin advocate, won Argentina’s presidential candidacy.
Argentine President’s Fulfills Promise
Newly elected President Javier Milie, while campaigning for the presidential election, had made a very positive comment about Bitcoin.
“The central bank is a scam, a mechanism by which politicians cheat the good people with inflationary tax,” he had said, adding that Bitcoin “represents the return of money to its original creator, the private sector”, and that “it prevents politicians from robbing you through inflation”.
President Javier Milei’s previous comments about Bitcoin and the central banking system have primarily supported decentralized currencies.
The newly-elected Argentine President has criticized central banks for perpetuating what he sees as a fraudulent system that harms citizens through inflation while praising Bitcoin for its ability to circumvent government control and reduce the impact of inflationary policies.
Argentina’s Bright Future on Cryptocurrency
By adopting Bitcoin in official contracts, Argentina aims to capitalize on the economic potential of digital currencies.
The move of the Latin American country is expected to stimulate investment, foster business development, and increase innovation in the financial sector.
It also positions Argentina as a pioneer in adopting cryptocurrency in government transactions, potentially influencing other nations to consider similar measures.
While the practical implementation of this decision and its legal nuances remain detailed, Diana Mondino’s announcement is a crucial step toward formally recognizing Bitcoin and other cryptocurrencies in Argentina.
It signals the country’s recognition of the growing importance of digital currencies in the global economy and its willingness to adapt its legal system to accommodate this evolution.
This development reflects Argentina’s proactive approach to embracing new financial technologies and its desire to be at the forefront of digital currency integration in governmental processes.
Argentina, considered Latin America’s third-biggest economy, is on its knees after decades of debt and financial mismanagement, with inflation surpassing 160 percent year-on-year and 40 percent of Argentines living in poverty.
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