New Argentina President Legalizes All Foreign Currencies For Payment – Including Bitcoin
Argentina’s newly elected leader, Javier Miliei, has taken a big step towards rebuilding the country’s economy by striking down the forced legal tender laws that required Argentinians to settle debt obligations in specific currencies. This move now allows the use of alternative currencies such as the USD and even Bitcoin (BTC).
The executive order, which repeals over 300 laws, aims to deregulate and revitalize Argentina’s economy. It fulfills one of Miliei’s major campaign promises to promote local currency competition and help dollarize the nation.
According to a translated version of the decree, the government believes it is necessary to respect the citizens’ choice in determining the forms of cancellation for their obligations, regardless of whether or not the currency is considered legal tender.
In addition to Bitcoin, Argentina’s contracts can now be agreed upon in virtually any other cryptocurrency or physical good, including commodities like kilos of steer or liters of milk, as clarified by the nation’s minister of foreign affairs.
While the new law does not specifically target cryptocurrencies, industry influencers perceive it as a significant step towards the adoption of Bitcoin. Proponents of the cryptocurrency argue that Bitcoin can assist individuals in unstable economies to escape hyperinflation.
Unlike the Argentinian peso, which witnessed its supply increase by an amount equivalent to 20% of the nation’s GDP under the previous administration’s rule, Bitcoin has a programmatic supply cap of 21 million coins.
Argentina has been grappling with severe inflation, surpassing 100% per year since February and skyrocketing to 160% after Miliei’s election last month. However, despite currently being down 36% from its all-time highs against the U.S. dollar, Bitcoin has seen a year-to-date increase of 1000% against the peso.
Miliei made inflation and government excess a central focus of his campaign, expressing concerns about the state of the currency in his latest order. He stated that with the liabilities of the central bank, the country is on track for an annual inflation rate of 15,000%, leaving no alternative solution but economic deregulation.
The Bitcoin community is delighted by Miliei’s support for the elimination of Argentina’s central bank, with Miliei referring to Bitcoin as a natural reaction against central bank scammers.
This latest development signifies a significant shift for Argentina’s economic landscape and opens up new possibilities for its citizens in terms of using alternative currencies, including Bitcoin, for their financial transactions.
Disclaimer: This article is provided for informational purposes only and should not be considered investment advice. The high-risk nature of cryptocurrencies should be taken into account before making any financial decisions.
