Legalization of Bitcoin contracts in Argentina

Using Bitcoin to pay a debt, rent, a worker, … well it’s now legal in Argentina! Argentina’s Foreign Minister has confirmed that contracts can be settled in Bitcoin in the country.
The legalization of Bitcoin contracts in Argentina is the result of the country’s economic reform decree passed on December 2, 2023. Is Argentina following in El Salvador’s footsteps to innovate with new means of exchange?

Argentina takes another step towards Bitcoin and crypto

Decree passed suddenly about legalization of Bitcoin contracts in Argentina

Argentina’s new president Javier Milei is already hard at work trying to turn his country’s economy around. Indeed, he has passed a historic decree of economic reform. This text, which repeals 300 laws and regulations, gives Argentinians the choice of settling contracts in currencies not recognized as legal tender in Argentina, in a context dominated by the collapse of the national currency. This historic decision formalizes and legalizes the gradual adoption of bitcoin in Argentina in recent years.

Under this decree, Bitcoin is now officially recognized as a means of settling contracts in Argentina. At least, this is what announced Diana Mondino, Argentina’s Minister of Foreign Affairs, International Trade and Worship. All other cryptocurrencies have also acquired the same status, confirms the minister, who refers to article 766 of the decree. It should be pointed out, however, that the choice of cryptocurrency to be used for contract settlement must be made in consultation between the two parties to the contract.

We ratify and confirm that in Argentina, contracts can be concluded in Bitcoin.

Diana Mondino, Argentine Foreign Minister

Fighting inflation for the survival of the country and its citizens, a refuge to bitcoin?

This legislative development formalizes one of the solutions that the population was already using. Argentina’s deleterious economic context is characterized by inflation in excess of 90% per year. Faced with a steadily depreciating peso, many citizens are turning to safe-haven assets such as dollars, euros and gold. Bitcoin and crypto-currencies are also a popular alternative for protecting savings.

However, will the consequences for the country’s economy prove positive? The popular and political will has been transformed into action here. The next few years will not only be decisive, but will also reveal the impact of authorizing a decentralized international currency – if bitcoin can be described as such – alongside Argentina’s sovereign currency. However, there is already an echoing example in Central America, albeit in a very different context.

Argentina in El Salvador’s footsteps?

Diana Mondino was recently appointed to the Ministry of Foreign Affairs by Javier Milei. Throughout his campaign, Argentina’s new president promised to put an end to the high inflation affecting the Argentine peso by legalizing the US dollar. During his his media appearances, he has consistently criticized the central bank and praised Bitcoin. This speech clearly resonated with Argentinians. In the second round of the presidential election held on November 19, 2023, Javier Milei was declared the winner with almost 56%.

While Javier Milei had made no promises on Bitcoin throughout his campaign, this decree reveals that he is changing his tune. This is probably linked to the influence of El Salvador, which recently sent a team to Argentina as part of a “Bitcoin diplomatic mission” for peace and economic freedom. El Salvador’s influence extends beyond Argentina. For instance, Gustavo Pedro’s Colombia is in the process of making a name for itself with significant progress in the adoption of Bitcoin.


Is Javier Milei turning to Bitcoin instead of the US dollar to cope with inflation? This is surely desirable both for the crypto industry and for Argentinians. Although to a lesser extent, the USD is indeed as affected by inflation as the peso. The same cannot be said for Bitcoin, at least in the long term. Following the legalization of Bitcoin contracts in Argentina, will other countries be inspired by this pioneering initiative?

At the scale of Argentina, this decree reflects the vision of the new president Javier Milei, determined to breathe new life into economic freedom. In his first speech, this outspoken liberal promised measures to address some of the country’s economic concerns. A major step has now been taken in the direction of legal adoption and favorable regulation of cryptocurrencies. While the details of how this landmark decision will be implemented remain unclear, the international adoption of crypto continues inexorably.