Argentina Bets on Bitcoin; Approves Use of BTC for Contracts in the Region

Argentine flag along with Bitcoin (BTC) demonstrates the country adopted the cryptocurrency

Argentina has become yet another country to recognize the leading cryptocurrency Bitcoin (BTC) as a legally accepted currency. The South American country opted for BTC to avert the consequences of the continuously falling value of the Argentine Peso (ARS). The rampant inflation in Argentina resulted in ARS’ beleaguered condition and now the country is moving forward to hold the hand of the flagship cryptocurrency. 

The announcement came on December 21, 2023, on X, formerly Twitter, from Minister of Foreign Affairs Diana Mondino. The Argentine minister confirmed that the country will now legally accept Bitcoin as a currency. His statement clarified that citizens of Argentina can now use BTC for entering into contract agreements. 

We ratify and confirm that in Argentina contracts can be agreed in Bitcoin.” 

(English translation of post made in Spanish)

The centralized financial system in the second biggest South American country after Brazil, Argentina, experienced turmoil in the past months. The newly elected president Javier Milei intends to make changes in the existing economic policies. Introducing BTC within the country’s legal system came in the wake of similar efforts. 

Bloomberg reported that Milei took 56% out of overall 99% of the counted ballots. Considered as a libertarian outsider, Milei was often seen to make amendments to fix the policy mismanagement that took place in the past decades. The Argentine economy witnessed a steep fall and the inflation rates are among the highest in the world. 

Milei is considered a pro-crypto politician and his win in the Argentine presidential election reflected on BTC price. Bitcoin reportedly saw a 2% price jump after his win was announced. 

President Milei reportedly announced a major decrease in the value of the Argentinian currency (ARS) on December 12, coupled with cuts in subsidies for energy and transportation. This move will lead to a 50% devaluation of the Argentine peso, transitioning from an exchange rate of 400 pesos per dollar to 800 pesos per US dollar.

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