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Argentina Legalizes Bitcoin in Contracts, Local BTC Price Hits Record High

The Argentine government, led by President Javier Milei, has taken a significant step in endorsing Bitcoin for use in legally binding contracts within the country. This move was officially confirmed by Diana Mondino, the minister of foreign affairs, affirming that Bitcoin could be utilized in contractual agreements within Argentina.

Decree Ratifying Bitcoin Use

In an announcement on December 21, Minister Mondino emphasized the endorsement of Bitcoin in Argentina’s contractual landscape. While the decree, titled “Bases for the Reconstruction of the Argentine Economy,” didn’t explicitly mention BTC, it did include provisions for currencies not recognized as legal tender. This announcement explicitly confirmed Bitcoin’s validity in contractual agreements within the country.

President Milei’s Stance

President Milei, known for his pro-crypto stance, declared a significant devaluation of the local currency, the Argentine peso, by 50%. This drastic devaluation, implemented on December 12, resulted in local Bitcoin prices soaring to an all-time high.

The country has been battling high inflation rates, currently at 161%, contributing to the surge in BTC prices denominated in Argentine pesos. The local cost of purchasing a Bitcoin has doubled since mid-December, reflecting the impact of the currency devaluation.

Speculations of Bitcoin Adoption

Rumors abound regarding Argentina potentially following El Salvador’s footsteps in adopting Bitcoin as legal tender in 2024. President Milei has previously hailed Bitcoin as a representation of returning monetary control to the private sector.

El Salvador’s Bitcoin Citizenship Law

In parallel developments, El Salvador passed a law offering citizenship to Bitcoin investors. The law, passed on December 21, grants expedited citizenship to foreigners making “donations” in BTC towards the government’s social and economic development programs. However, specific minimum donation requirements remain unspecified in the legislation.

As a result of these developments, El Salvador’s Bitcoin reserves, currently totaling $122 million, have returned to a positive balance according to the Bukele BTC investment tracker.

Both Argentina’s strides in legalizing Bitcoin for contracts and El Salvador’s innovative citizenship approach for BTC investors signify significant steps toward broader cryptocurrency adoption in governmental frameworks.

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