Argentinas New Foreign Minister Announces Acceptance of Bitcoin for Contracts

According to a report by “The Block”, Argentina has “approved and confirmed” that Bitcoin can be used as currency for official contracts following the election of cryptocurrency-friendly President Milei. Argentina’s Minister of Foreign Affairs, International Trade, and Religious Affairs, Diana Modino, stated on the X platform on Friday (22nd) that “debtors must deliver the corresponding amount of designated currency, regardless of whether that currency is legal tender in the Republic”. Modino did not provide details of any new cryptocurrency-related measures the government may be planning to take, but the early recognition of Bitcoin aligns with President Milei’s currency policy views in the face of severe local currency inflation and devaluation issues. With the continuous depreciation of the Argentine peso, some Argentines have started to accept digital currencies, while others still choose to engage in illegal currency transactions. According to a previous report by Zombit, Julian Colombo, CEO of cryptocurrency exchange Bitso Argentina, pointed out in April this year that local residents often carry large amounts of peso banknotes to “black market” (cuevas) to exchange for “blue dollar”. He also stated that since the start of the COVID-19 pandemic, local residents have “largely relied on using cryptocurrencies to hold dollars in their digital wallets, and the use of stablecoins has made it possible”. Related reports: “Bitcoin supporter Milei elected President of Argentina, previously advocated for closing the central bank to save the economy” and “Argentina deep in inflation crisis, MicroStrategy founder suggests embracing Bitcoin”.