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Argentina’s Milei era: Bitcoin contracts, central bank closure, and a currency-free market

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on Dec 21, 2023
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  • Argentina embraces Bitcoin for contracts, including other cryptos and tangible assets.
  • President Milei leads a historic shift, closing the central bank, rejecting legal tender laws.
  • Latin America emerges as a pro-Bitcoin region, setting a global precedent for economic experiments.

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Argentina is making waves in economic policies under President Javier Milei. The recent announcement by the Minister of Foreign Affairs, Diana Mondino, reveals a groundbreaking shift toward Bitcoin adoption for contractual agreements. This move, coupled with plans to close the central bank and embrace a currency-free market, marks an unprecedented experiment.

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Latin America, surprisingly pro-Bitcoin, is witnessing a transformation that challenges traditional economic norms.

Bitcoin contracts now accepted in Argentina

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Argentina has taken a bold leap into the world of cryptocurrency, with Minister of Foreign Affairs Diana Mondino confirming that the country now accepts Bitcoin for contractual agreements.

In a groundbreaking statement, Mondino declared that contracts can be agreed upon in Bitcoin, extending the inclusivity to other cryptocurrencies and tangible assets like litres of milk. This shift, outlined in Article 766, mandates debtors to deliver the agreed-upon amount, irrespective of the currency’s legal tender status.

The move signifies a pivotal moment in legal recognition and sets the stage for a monetary free market.

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Under President Milei’s leadership, Argentina is charting a course away from traditional legal tender laws. Citizens, businesses, and the government will soon have the flexibility to accept any currency or asset, fostering a monetary free market competition.

This bold experiment, the first of its kind in over a century, aims to address hyperinflation and the prevalent use of multiple currencies, including the widely adopted US dollar. The government’s decision to close down the central bank aligns with the broader vision of a currency-free economy.

Following the recent announcement by the Foreign Affairs Minister, the country seems to be embracing Bitcoin, aligning with the general trend across Latin America. Following El Salvador’s lead in making Bitcoin legal tender, Brazil’s crypto-friendly regulations, and now Argentina’s Minister using Bitcoin to introduce new policies, the region is becoming a hub for cryptocurrency experimentation.

The openness to crypto experiments in Latin America is attributed to the educated population, the presence of necessities, and the absence of a fully developed nation’s infrastructure. This regional pro-Bitcoin stance sets a precedent for other nations considering similar initiatives.

A currency revolution on the horizon

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Argentina, led by President Milei, is on the brink of a currency revolution, challenging conventional economic norms. The acceptance of Bitcoin for contracts, coupled with plans to move away from legal tender laws and close the central bank, marks an unprecedented shift.

As Latin America emerges as a pro-Bitcoin region, the success of Argentina’s experiment will undoubtedly influence global perspectives on cryptocurrency adoption. The world watches as the country navigates uncharted waters, ushering in a new era of economic possibilities.

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