As the world’s largest economies prepare to regulate cryptocurrencies, Argentina, with a GDP exceeding half a trillion dollars, is taking a different path. Recently, the country’s Foreign Minister announced a significant move concerning Bitcoin. With the election of the crypto-friendly President Javier Milei, positive developments from Argentina regarding cryptocurrencies were anticipated.
According to Argentina’s newly appointed Foreign Minister, Diana Modino, the country has approved the use of Bitcoin for contracts. She confirmed this in a social media post, stating, “We confirm and verify that you can make contracts with Bitcoin in Argentina, and also with any other type of cryptocurrency.”
While the specifics of their cryptocurrency plans were not disclosed, Argentina appears to be preparing to support a diversity of exchange methods. Mauricio Di Bartolomeo, co-founder of Ledn, mentioned last month that Argentinians would soon be able to legally transact with Bitcoin and stablecoins.
Interestingly, a decree accepted on December 20th, titled “Foundations for the Restructuring of the Argentine Economy,” allows debtors to trade with items not legally recognized as currency in Argentina. This resembles a barter system, similar to what was observed in Venezuela during their fight against high inflation.
Milei’s approach to currency and inflation is unconventional, aiming to eliminate the local currency and fully adopt the US dollar. However, foreign currency transactions in Argentina are still conducted through the black market.
Whether Bitcoin and the broad range of permitted barter items will help with the high inflation is uncertain, but Argentina could make significant moves in the crypto space once it implements its official measures.