“Contracts Can Be Settled in Bitcoin,” Says Argentina Foreign Affairs Minister

Argentina’s Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, has announced that the Argentine government’s recent decree, titled “Bases for the Reconstruction of the Argentine Economy,” legalizes the use of Bitcoin and other cryptocurrencies in contracts and payments. 

The decree, passed on December 20, focuses on economic reform and deregulation and includes provisions allowing debtors to settle payments using currencies not recognized as legal tender in Argentina. While the decree does not explicitly mention cryptocurrencies, it provides a framework for their acceptance in contractual agreements.

Mondino, in a post on X (formerly Twitter), emphasized that the freedom to settle contracts in Bitcoin and other cryptocurrencies is affirmed by the decree. 

Ratificamos y confirmamos que en Argentina se podrán pactar contratos en Bitcoin.

— Diana Mondino (@DianaMondino) December 21, 2023

This move aligns with Argentina’s ongoing efforts to address economic challenges, particularly inflation, under the leadership of President Javier Milei. Milei, known for his support of Bitcoin and anarcho-capitalist views, sees cryptocurrency as a means of returning money to the private sector.

The Decree’s Provisions and Crypto-Friendly Measures

Article 1196 of the decree explicitly states that parties involved in contracts have the liberty to specify the amounts and types of currency used for bonds or security deposits. 

This includes cryptocurrencies, reinforcing the government’s commitment to providing individuals with the freedom to choose the currency they prefer. The decree’s provisions are not limited to digital assets; they extend to commodities like kilograms of beef or liters of milk, showcasing a broad acceptance of various forms of value in contractual transactions.

President Milei’s election victory was a positive signal for crypto adoption in Argentina. The decree, enacted as part of Milei’s initial economic measures, signifies a potential shift in the country’s stance on cryptocurrencies. 

VIVA LA LIBERTAD CARAJO

CC: @PhilippBagus pic.twitter.com/DuXcnobkVd

— Javier Milei (@JMilei) December 21, 2023

Despite Milei not making public statements about digital assets since taking office, the appointment of Mondino and the inclusion of crypto-friendly provisions in the decree indicate a favorable environment for crypto-related developments in Argentina.

Argentina’s move to recognize Bitcoin in contracts comes at a time when cryptocurrencies are gaining global acceptance. The announcement echoes a broader trend of digital assets becoming integrated into mainstream financial systems. 

“Article 766. – Debtor’s obligation. The debtor must deliver the corresponding quantity of the designated currency, whether the currency is legal tender in the Republic or not.”

The inclusion of Bitcoin alongside traditional forms of currency and commodities demonstrates a willingness to explore diverse financial instruments.

President Milei’s anti-central bank stance and commitment to ending political privileges align with a broader sentiment favoring decentralized financial systems. The support of influential figures like Elon Musk indicates optimism for Argentina’s economic future under Milei’s leadership.