Argentina Approves Bitcoin (BTC) as “Official” Currency

Key Insights:

• Argentina’s new government has “ratified and confirmed” that contracts denominate in Bitcoin can be officially recognized by the country’s courts.
• The historic news was confirmed on Thursday, December 21 in a post on X (formerly Twitter) by Argentina’s foreign minister.
• The adoption of cryptocurrency was an integral part of Argentina’s new President Javier Milei’s campaign manifesto.

Argentina has officially endorsed the use of Bitcoin in legally-binding contracts, as confirmed by the nation’s recently appointed foreign minister.

With the election of crypto-friendly President Javier Milei, Argentina has solidified its stance, ratifying that Bitcoin can serve as a valid currency in official contracts.

Diana Modino, Argentina’s minister of foreign relations and international commerce, shared this news with her substantial following of 360,000 on X.

“We ratify and confirm that in Argentina you can agree on contracts in Bitcoin,” -Diana Mondino, Dec 21.

The historic tweet also emphasizes the broader acceptance of various cryptocurrencies and even other commodities like kilograms of beef or liters of milk, as per existing law.

While specific government measures related to crypto were not disclosed, this early acknowledgment aligns with President Milei’s perspective on countering financial inefficiencies and corruption through Bitcoin.

As Argentina grapples with severe hyperinflation and currency devaluation issues, the move is seen as a potential first step toward broader crypto adoption. Some believe that if South America’s second-largest economy embraces bitcoin more widely, it could influence the global use of cryptocurrencies.

The formal approval of bitcoin in contracts represents a significant development, suggesting that Argentina might be moving towards adopting crypto on a larger scale. According to Mauricio Di Bartolomeo, co-founder of Ledn, Argentinians can expect to legally transact in bitcoin and stablecoins soon, following Milei’s election.

First Step Towards Broader Adoption?

In recent years many Argentinians have embraced digital currencies like Bitcoin and USD-denominated stablecoins as the local Peso has eroded in value, amid double-digit inflation.

While this ratification is historic in the Latin America region, the news did not come as surprise to many citizens.

Mauricio Di Bartolomeo, the co-founder of Ledn a prominent crypto lending and trading platform  said last month following Milei’s election that “Argentinians will be able to legally transact in bitcoin and stablecoins very soon,”

In effect, Argentina formally approving the use of Bitcoin in legally-binding contracts could be a first step toward the country potentially adopting crypto on a larger scale.