Argentina Adopts Bitcoin-Settled Lease Agreements
Argentina has achieved a significant milestone in cryptocurrency adoption with the registration of one of the first lease agreements involving bitcoin payments. This landmark contract was recently signed in Rosario City, according to local news outlet La Capital.
The lease agreement specifies that the tenant must pay the equivalent of $100 USDT in bitcoin to the landlord each month. The tenant will use Fiwind, a national cryptocurrency exchange, to determine the referential bitcoin price for these payments. The contract also mandates that the tenant must make these payments within the first five days of each month to a provided address.
While there have been previous records of real estate sales settled in bitcoin, this is the first lease agreement of its kind, as reported by local sources.
The Executive Order behind Bitcoin-Settled Agreements
The Minister of Foreign Affairs of Argentina, Diana Mondino, clarified that these contracts are made possible by the first emergency executive order issued by President Javier Milei. This order eliminated the lease and rent law, allowing contracts to be settled in bitcoin, other cryptocurrencies, and other assets.
The courts of Argentina will review the executive order, which has already faced suspensions of certain segments. The final decision on its legality is pending. Additionally, if both chambers of Congress reject the order, it can be suspended.
Despite this, the executive order currently enables tenants and landlords to legally enter into bitcoin-denominated lease agreements, allowing them to avoid transacting in the devalued national fiat currency, the Argentine peso.
Hot Take: Bitcoin Adoption Expands in Argentina’s Real Estate Sector
Argentina takes an important step in its crypto adoption journey as it witnesses the first-ever lease agreement settled in bitcoin. By allowing tenants and landlords to transact in cryptocurrency, the country showcases its openness to embracing new forms of payment and boosts the potential for further crypto adoption in the real estate sector. This innovative approach provides an alternative solution to dealing with the challenges posed by the devalued national fiat currency. As the legal status of the executive order is being reviewed, the outcome will determine the future of bitcoin-settled agreements and their impact on the Argentine real estate market.
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