Argentina Confirms Crypto Milestone, OKs Bitcoin-Denominated Financial Contracts

Zinger Key Points
  • Foreign Minister Diana Mondino's announcement marks a significant advancement in Argentina's crypto adoption.
  • Argentina's Bitcoin contract decision could boost cryptocurrency investment and innovation.

The Argentine government has confirmed that financial contracts can now be denominated in Bitcoin.

What Happened: Foreign Minister Diana Mondino announced the decision on social media: "We ratify and confirm that in Argentina contracts can be agreed in Bitcoin."

Also Read: Hodl Your Horses, Bulls: Matrixport Predicts Bitcoin Stampede — Will You Get Trampled Or Triumphant?

The decision is based on Article 766 of the Argentine Civil Code. It states that the debtor must deliver the amount corresponding to the currency designated in the contract, regardless of whether the currency has legal tender in the Republic.

Why It Matters: The decision is a victory for cryptocurrency advocates in Argentina since it will likely lead to increased investment and innovation in the cryptocurrency sector.

It's also one of the first major decisions made under Argentinian President Javier Milei, who was sworn in on Sunday, Dec. 10 with a promise of radical change for the nation’s troubled economic landscape.

Argentina has been a relatively friendly jurisdiction for cryptocurrencies in recent years.

In 2021, the country's central bank issued regulations that allowed banks to provide services to cryptocurrency exchanges.

Read Next: Messari Is Bullish On Bitcoin And Solana, But Cautious On Ethereum: What About AI?

Image: Pixabay

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