According to The Block, following the election of crypto-friendly President Javier Milei, Argentina has “approved and recognized” Bitcoin as a currency for official contracts. Diana Modino, the Minister of Foreign Affairs, International Trade, and Religious Affairs of Argentina, stated on the X platform on Friday (22nd) that “debtors must deliver the corresponding amount of designated currency, regardless of whether the currency is legal tender in the Republic.”
Modino did not provide any details on any new measures related to cryptocurrencies that the government may plan to take, but the early recognition of Bitcoin aligns with President Milei’s currency policy views in the face of severe currency inflation and devaluation issues in the country.
With the continuous devaluation of the Argentine peso, some Argentinians have started to accept digital currencies, but there are also those who choose to engage in illegal currency transactions.
According to a previous report by Zombit, Julian Colombo, the CEO of the cryptocurrency exchange Bitso Argentina, pointed out in April this year that local people often carry large amounts of Argentine peso banknotes to the “black market” (cuevas) to exchange for “blue dollars.” He also stated that since the beginning of the COVID-19 pandemic, local people have “largely relied on using cryptocurrencies to hold dollars in their digital wallets, and the use of stablecoins has made it possible.”
Related reports: “Bitcoin supporter Milei elected President of Argentina, advocated closing the central bank to save the economy” and “Argentina deeply trapped in inflation crisis, MicroStrategy founder suggests embracing Bitcoin.”
