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Argentina Moves Towards Bitcoin Adoption With New Decree

Key Takeaways

Javier Milei, Argentina’s newly elected leader, has issued a decree that nullifies forced legal tender laws and allows the use of USD, Bitcoin, and other alternatives for settling debts.

Argentina Overhauls Economy With New Order

The executive order repealing over 300 laws is part of an effort to deregulate and overhaul the Argentinian economy. The order fulfills one of Milei’s campaign promises to enable local currency competition and assist in the “dollarization” of Argentina.

The decree states the need to respect citizens’ agreements on the forms of debt cancellation, regardless of the legal tender status of the chosen currency. Argentina’s minister of foreign affairs confirmed that contracts can be made with Bitcoin or other goods like “kilos of steer or liters of milk.”

Move Seen as Positive for Bitcoin Adoption

Though the bill does not explicitly target cryptocurrencies, it is seen as a positive move toward Bitcoin adoption to combat hyperinflation. The Argentinian peso’s supply increased by about 20% of the nation’s GDP during the previous administration, while Bitcoin has a supply cap of 21 million coins.

Milei criticizes the current state of inflation and government spending, which he discussed during his campaign. He suggests an inflation trajectory that could reach 15,000% annually, due to central bank liabilities, and sees economic deregulation as the sole solution.

Argentina Poised to Eliminate Central Bank

Milei supports the elimination of Argentina’s central bank and endorses Bitcoin as a response against central bank malpractices. The news about Argentina potentially moving toward Bitcoin and foreign currencies for payment has been positively received in the Bitcoin community.

– Tweet by Samson Mow: https://twitter.com/Excellion/status/1737909740028723392?ref_src=twsrc%5Etfw
– Tweet by Alex Stanczyk: https://twitter.com/alexstanczyk/status/1611010925401903104?ref_src=twsrc%5Etfw

Decree: The historic decree of Milei to repeal 300 laws


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