The Argentinian government is opening the doors for cryptocurrency use cases beyond speculation. Argentina’s Minister of Foreign Affairs, Diana Mondino, announced on Thursday that contracts in Argentina can now be settled in cryptocurrency. This includes popular cryptocurrencies like Bitcoin as well as less common use cases like kilos of meat or liters of milk for contracts.
Economic Reforms Underway
The announcement comes amid broader economic reforms initiated by the Argentinian government. The Argentine peso currency was devalued by more than 50% as part of the economic strategies aimed at providing “economic shock therapy” to tackle financial problems. The government’s “Bases for Reconstruction of the Argentine Economy” decree outlined over 300 measures focusing on deregulation, privatization, and revisions to housing and land laws. The goal, according to the government, is to give individuals more freedom and autonomy while reducing regulations that have slowed economic growth.
However, these reforms have been met with protests from thousands of Argentinians who have taken to the streets of Buenos Aires.
Crypto Gains Political Backing
The election of Javier Milei, Argentina’s pro-crypto president in November, has raised cryptocurrency’s profile. Milei’s win briefly caused a spike in the price of Bitcoin [ Mondino posted to Twitter on Thursday]. A report from Grayscale Research suggests Milei’s presidency could lead to wider crypto acceptance and use, potentially addressing issues of inflation and financial instability in Argentina.
The informal dollar economy and high inflation have created a large blockchain and crypto community in Argentina, making it one of the most active in Latin America. Major crypto projects like MakerDAO and Chainlink have key developers based in Argentina, as Chainalysis has indicated.
Argentina’s approach to cryptocurrency contracts was reported by Cryptonews.
The new rules pave the way for crypto to play a broader economic role beyond speculation, though details on implementation remain sparse.