Barely a month after he took office, President Javier Milei continues to make sweeping changes in Argentina’s economic policies. Recently, his administration approved the settlement of contracts in Bitcoin (BTC) and other cryptocurrencies. He also introduced a bill favoring crypto holders and announced his country’s refusal to join BRICS.
Javier Milei and Bitcoin
During his campaign, Milei was heavily hyped as a Bitcoin advocate. He said it “represents the return of money to its original creator, the private sector.” The outspoken politician also remarked that it “prevents politicians from robbing you through inflation.” There were expectations, too, that his win would make Argentina follow El Salvador’s stride in making BTC a legal tender and reserve asset.
Since his win though, Milei has yet to touch on the topic of Bitcoin in his speeches. Instead, he suggested the adoption of the US dollar to quell Argentina’s inflation problems. Likewise, he appeared to have already pulled out on his promise to shut down the country’s central bank in favor of restructuring it.
However, Milei’s actions seem to be speaking louder than his words.
Bitcoin for Contract Settlement
On December 21, Minister of Foreign Affairs and Worship of Argentina Diana Mondino confirmed that the recently passed “Bases for the Reconstruction of the Argentine Economy” decree now allows debtors under Argentine contracts to settle their dues in Bitcoin and other cryptocurrencies.
This sheds clarity on the decree’s Article 766 which translates as, “The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not.”
The provision of Article 1166 further states, “The parties have the liberty to specify the amounts and the type of currency used for the bond or security deposit, as well as the method for its reimbursement upon the lease’s conclusion.”
Interestingly, the proclamation also allows the transacting parties to conveniently resolve their obligations using kilos of steer or liters of milk.
New Crypto-Friendly Bill
On December 27, another good news came to crypto holders in Argentina. A new bill was filed in Congress covering “cryptoassets and other similar goods, regardless of who issued them, who owns them, and where they are deposited or stored.”
Basically, it pushes for the regulation, legitimacy, and adoption of cryptocurrencies. It incentivizes those who will declare their crypto assets prior to March 31 with only 5% tax instead of the 10% required in April and 15% after June.
In addition to this, the bill recommends that only those in excess of the first $100,000 regularized assets will be taxed.
Argentina Declines BRICS Membership
What’s more, Milei just swerved from the previous administration’s interest to join the BRICS. The letter dated December 22 but was only released on the last working day of 2023 pointed out that the moment is not an “opportune” time for Argentina to be a member of the alliance.
This comes in support of Milei’s foreign policy aligning with the “free nations of the West.” Despite that, he proposed an intensification of the bilateral ties between Argentina and BRICS members.