Argentina’s new minister of foreign affairs, Diana Mondino, said, “We ratify and confirm that Bitcoin can be used to negotiate contracts in Argentina.”
Javier Milei’s victory has set Argentina on a path away from legal tender restrictions and toward an economy without them.
Government contracts are the first step toward a monetary-free market in which citizens, companies, and the government may all participate by accepting any money or asset.
This experiment has not been attempted in over a hundred years; however, situations with several currencies being used simultaneously sometimes occur following hyperinflation.
Although bitcoin’s popularity is on the rise, Argentina’s government is following the historical pattern of launching a new fiat currency when the dollar loses ground.
Having a mandatory national fiat currency is not on the cards for Argentina. The day before Milei’s inauguration, locals gathered outside the central bank for a vigil in protest of his intention to shut it down.
As a result of the galloping inflation, Hayek and the Austrian school of economics have gained popularity, which would be another first in a century.
The future of bitcoin in Latin America is uncertain, but the area has unexpectedly become the most pro-bitcoin in terms of official support.
Cryptocurrency is now legally enforceable in El Salvador. Crypto rules in Brazil are favorable. Presenting their new strategy, the Argentine minister has now turned to bitcoin.
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