Argentina's new government gives early nod to bitcoin, says crypto can be used in contracts

Following the election of crypto-friendly President Javier Milei, Argentina has "ratified" and "confirmed" that bitcoin can be used as currency in official contracts. 

"We ratify and confirm that in Argentina you can agree on contracts in bitcoin," Argentina's minister of foreign relations and international commerce, Diana Modino, posted to X where she has a robust following of 360,000 followers.

"And also any other kind of crypto," she added, posting an article of existing law. "Or anything like kilos of steer or liters of milk."

Modino fell short of providing details about any new measures the government might be planning related to crypto, but the early nod to the world's largest cryptocurrency is in line with recently-elected President Milei's views on monetary policy amid the local currency's severe issues with hyperinflation and devaluation.

"Milei sees Bitcoin BTC -1.12% as a crucial tool in countering the inefficiencies and corruptions of centralized financial systems," Grayscale Investments said in a report last month. If South America's second-largest economy begins using bitcoin with greater frequency, it could catalyze the use of crypto around the globe, some believe. 

A first step towards adoption

Some Argentinians have embraced digital currencies as their local peso has eroded in value, even as others still opt to trade currency illicitly.

While the ratification is likely not a surprise to some, Argentina formally approving the use of bitcoin in contracts could be a first step toward the country potentially adopting crypto on a larger scale.

"Argentinians will be able to legally transact in bitcoin and stablecoins very soon," Ledn co-founder Mauricio Di Bartolomeo said last month following Milei's election.