The Argentine government has confirmed that financial contracts can now be denominated in Bitcoin.

What Happened: Foreign Minister Diana Mondino announced the decision on social media: "We ratify and confirm that in Argentina contracts can be agreed in Bitcoin."

Ratificamos y confirmamos que en Argentina se podrán pactar contratos en Bitcoin.

— Diana Mondino (@DianaMondino) December 21, 2023

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The decision is based on Article 766 of the Argentine Civil Code. It states that the debtor must deliver the amount corresponding to the currency designated in the contract, regardless of whether the currency has legal tender in the Republic.

Why It Matters: The decision is a victory for cryptocurrency advocates in Argentina since it will likely lead to increased investment and innovation in the cryptocurrency sector.

It's also one of the first major decisions made under Argentinian President Javier Milei, who was sworn in on Sunday, Dec. 10 with a promise of radical change for the nation’s troubled economic landscape.

Argentina has been a relatively friendly jurisdiction for cryptocurrencies in recent years.

In 2021, the country's central bank issued regulations that allowed banks to provide services to cryptocurrency exchanges.

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