Argentina’s New President Allows Use of Foreign Currencies, Including Bitcoin
Argentina’s newly elected president, Javier Miliei, has repealed forced legal tender laws that required Argentinians to settle debts in specific currencies. This move allows the use of alternatives like the USD and Bitcoin (BTC). The decision is part of a broader executive order aimed at deregulating and rebuilding the country’s economy. It fulfills one of Miliei’s campaign promises to enable local currency competition and “dollarize” the nation.
Contracts Can Now Be Agreed in Bitcoin
The nation’s minister of foreign affairs clarified that contracts can now be agreed upon in Bitcoin, as well as other cryptocurrencies or physical goods. While not explicitly targeting crypto, industry influencers view this as a step toward BTC adoption. Bitcoin proponents argue that it can help individuals in unstable economies escape hyperinflation, as it has a programmatic supply cap unlike the Argentinian peso.
Argentina’s Inflation and Miliei’s Plans
Inflation in Argentina has surpassed 100% per year since February and rose to 160% after Miliei took office. BTC has seen a 1000% increase against the peso this year, despite being down 36% from its all-time highs against the USD. Countering inflation and government largesse were focal points of Miliei’s campaign. He stated that there is “no alternative solution” to the problem besides economic deregulation. Miliei has advocated for the elimination of the country’s central bank and called Bitcoin a natural reaction against central bank scammers.
Hot Take: Argentina Embraces Crypto Amidst Economic Crisis
Argentina’s new president, Javier Miliei, has made significant moves to address the country’s economic challenges by repealing forced legal tender laws and allowing the use of foreign currencies, including Bitcoin. This decision is seen as a step toward Bitcoin adoption and offers individuals in unstable economies an alternative to escape hyperinflation. With inflation rates exceeding 100% per year, Miliei’s focus on countering inflation and deregulating the economy aims to provide a solution to the ongoing monetary disaster. By embracing cryptocurrencies like Bitcoin, Argentina is taking a bold step toward rebuilding its economy and offering citizens more financial freedom.
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