A Renter In This City Agrees To Pay Landlord In Bitcoin: A Sign Of Mainstream Status?

Zinger Key Points
  • The first rental agreement to be paid in Bitcoin was recorded in Rosario, Argentina.
  • A recent change in Argentina's legislature makes it possible to sign contracts with payment in foreign currency, including Bitcoin.

Argentina recorded its first ever rental agreement involving Bitcoin BTC/USD as a mode of payment between parties.

What Happened: Rosario, the third most populous city in Argentina, saw the first rental agreement signed between a local landlord and a tenant wherein the monthly rent payment will be in Bitcoin, local newspaper Pagina 12 reported.

The monthly payment under the sealed contract will amount to an equivalent of 100 USDT in Bitcoin. USDT is the stablecoin trading at a 1:1 peg with the dollar, resulting in the monthly rent amounting to 0.0021 BTC.

Fiwind, a local crypto platform, will be used to transfer the funds. The parties to the contract are experienced crypto users.

Also Read: Argentina's Inflation Was Around 200% in 2023 — And It Could Get Worse in 2024: New Leadership Says It Will Take Time To Reverse

Why It Matters: The step follows the latest legal amendments by newly-elected president Javier Milei.

Milei's new administration passed amendments to Argentinian rental laws, stipulating that payment in new rental contracts can happen in domestic or foreign currency.

In the last week of December 2023, Argentina's foreign minister Diana Mondino confirmed that contracts in Argentina can be agreed upon in Bitcoin.

The “Bases for the Reconstruction of the Argentine Economy” decree, passed on Dec. 20, 2023, did not mention cryptocurrency specifically but included provisions that debtors had the choice to pay in currencies not recognized as legal tender in Argentina.

Read Next: Crypto Crackdown Looms in Argentina As Milei's Bill Demands Full Disclosure

Image: Pixabay

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyLatin AmericaNewsMarketsargentinaBitcoin adoptionStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!