The world was shocked when Argentinians chose controversial politician Javier Milei as the new president. The South American country has been in shambles financially for decades, and Milei promises big changes. He cut back many interior departments and made the first move in a broader economic reform. Part of that reform is accepting cryptocurrencies, but not in the way El Salvador did.
Milei is an avid supporter of cryptocurrencies, but is unsure of accepting Bitcoin as legal tender. That might shake up the already fragile economy in the country. However, one of the first things he did with the economic reform was to accept cryptocurrencies as contractual payments. So, Bitcoin didn’t actually go legal in Argentina under Milei, but it’s an important step in the right direction that can help with the country’s financial woes.
No Mention of Cryptocurrencies
Here’s the twist – the announcement doesn’t mention cryptocurrencies specifically. However, it lets contractors and residents to choose the form of payment that suits them the best, including provisions on both sides. Experts widely believe that the ruling includes cryptocurrencies as well. Milei is not against the idea of digital assets, choosing the safe option to introduce them to Argentina’s weak economic system as contractual payments.
The move was announced by the country’s new Minister of Foreign Affairs – Diana Mondino. She tweeted the news that reached all parts of the globe as a first part of the new president’s broader economic reform. Everyone knows that Argentina needs a chance in monetary policies and there’s a lot of work to be done in the debt department. By integrating digital assets into the system, Milei hopes that it’ll help with the hyperinflation and support the weak economy.
With the changes in the law, contracts can be agreed in Bitcoin. According to Mondino, other digital assets (cryptocurrencies) as well as tangible assets—for example meat or milk—are also permittable for contracts.
The new law is supposed to encourage innovation in financial transactions. It comes off the heels of the new economy degree which repeals outdated laws from over 300 years ago. They’ve been greatly linked to Argentina’s worsening financial state. While previous governments failed or didn’t want to change things, Milei is not afraid of some elbow grease.
Javier Milei’s shocking electoral win signals a change in Argentina’s political structure. It’s clear that the people want something different after decades of economic turbulences. Argentina’s debt situation is one of the worst in the world, and no one tackled the problem properly before. Enter Javier Milei, an unlike presidential candidate and winner, who is openly pro-crypto.
That doesn’t mean that he’ll follow the example of El Salvador. However, Argentina’s dedication to endorse digital assets for contractual payments shows that the new government wants to unlock the full potential of cryptocurrencies. The country has nothing to lose and everything to gain. By implementing the new framework, it may foster economic growth and innovation, which might lead it in calmer waters in an economic sense.