Argentina’s Foreign Affairs Minister Says “Contracts Can Be Settled in Bitcoin,” Additional Cryptocurrencies

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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December 21, 2023 14:08 EST

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Argentina’s Minister of Foreign Affairs, Diana Mondino, has announced that the South American country will allow contracts to be agreed upon in cryptocurrency.

A crypto-friendly country

“We ratify and confirm that in Argentina contracts can be agreed in Bitcoin,” Mondino posted to X on Thursday.

“And also any other kind of crypto and/or species such as kilos of steer or liters of milk,” Mondino stated in a reply to her original post.

However, Mondino failed to provide additional details in regards to the news of crypto-friendly contracts.

Sweeping economic reform hits Argentina

Mondino’s statement comes shortly after newly-elected Argentinian President Javier Milei devalued the country’s currency by more than 50% as part of his larger plan to provide “economic shock therapy” to the nation as it struggles through a troubling financial crisis.

On Wednesday night, Milei announced the “Bases for Reconstruction of the Argentine Economy” decree that included over 300 measures for deregulating the nation’s economy. The decree would, in part, privatize a number of state-owned companies and strike down a number of regulations regarding housing, land ownership, and more.

“The objective is to return freedom and autonomy to individuals and start dismantling the enormous amount of regulations that have impeded, hindered, and stopped economic growth,” Milei said in a broadcast statement.

Following the announcement of the decree, thousands of Argentinians took to the streets of Bueno Aires to protest the economic reforms.

The November election of pro-crypto Milei, who is a self-identified “anarcho-capitalist” and previously spoke of “burning down” Argentina’s central bank, briefly caused the price of bitcoin to surge.

The positive side of a pro-crypto presidency

However, Milei’s supporters argue that his stance on cryptocurrency may offer the country a way out of decades of financial crises.

“His presidency could pave the way for greater acceptance and integration of cryptocurrencies in Argentina’s economy, offering a potential solution to the long-standing issues of inflation and financial instability,” reads a recent report from Grayscale Research. “Milei’s victory could signify a paradigm shift in how developing economies like Argentina perceive and use digital currencies.”

The unofficial dollarization of Argentina, paired with the country’s high rates of inflation, has made Argentina “one of the most active communities in blockchain in all of Latin America,” according to blockchain analytics firm, Chainalysis.

Prominent players in crypto, such as decentralized stablecoin MakerDAO as well as Web3 platform Chainlink, “have a number of key developers based in the city,” Chainalysis shares.