Argentina's newly appointed foreign minister, Diana Modino, has confirmed that Bitcoin has received official endorsement for use in legally binding contracts. This development comes as President Javier Milei, who is known for his favorable stance towards cryptocurrencies, assumes office.
With this recognition, Argentina has firmly established Bitcoin's validity as a currency for official contracts. Modino shared this significant news with her vast audience of 360,000 on the X platform.
The tweet of historical significance also highlights the growing acceptance of different cryptocurrencies and other commodities, such as beef or milk, by current laws.
Although there were no specific government actions mentioned regarding crypto, this early recognition aligns with President Milei's viewpoint on using Bitcoin to combat financial inefficiencies and corruption.
Amid Argentina's struggles with severe hyperinflation and currency devaluation, this move is seen as a possible initial stride toward wider adoption of cryptocurrencies.
There are thoughts that if the second-largest economy in South America embraces Bitcoin on a larger scale, it could have an impact on the global utilization of cryptocurrencies.
Mauricio Di Bartolomeo, co-founder of Ledn, believes that the legalization of Bitcoin and stablecoins for transactions will soon be a reality for Argentinians, especially following Milei's election.
This development marks a crucial step towards the broader acceptance of cryptocurrencies in Argentina. Over the past few years, many Argentinians have turned to digital currencies like Bitcoin and stablecoins denominated in USD due to the devaluation of the local Peso caused by high inflation rates.
While the recognition of Bitcoin in contracts is a historic moment for the Latin America region, it did not come as a surprise to the citizens.
In fact, earlier this year, in April, the cryptocurrency exchange Binance announced its expansion of services in Argentina to cater to the needs of those affected by inflation. This allowed users to directly buy and sell digital currencies using the local currency, Pesos.
Last month, Mauricio Di Bartolomeo, the co-founder of Ledn, a prominent crypto lending and trading platform, expressed his belief that "Argentinians will soon have the legal ability to conduct transactions in bitcoin and stablecoins."
Consequently, if Argentina were to officially approve the use of Bitcoin in legally binding contracts, it could serve as a preliminary step toward the country potentially embracing cryptocurrency on a larger scale.
Additionally, this development permits Argentines to convert their Pesos into a Binance account through a local partner, allowing them to make cryptocurrency purchases. Before this announcement, Binance had solely operated in Argentina as an intermediary platform connecting crypto buyers and sellers.
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