Argentina adopts Bitcoin as legal tender? The effects of President Javier Milei's emergency decree.

Argentina adopts Bitcoin as legal tender? The effects of President Javier Milei's emergency decree.

According to a report by www.heise.de,

Argentina's Minister of Foreign Affairs, International Trade and Worship, Diana Mondinos, has confirmed that Argentine contracts can be concluded in Bitcoin. Despite the fact that Bitcoin is not mentioned in the emergency decree of the new Argentine President Javier Milei, the comprehensive deregulation of the economy and government could open doors for cryptocurrencies.

By completely repealing countless laws, making fundamental changes or denying their effect, Argentine President Milei is opening up the possibility for future contracts in cryptocurrencies such as Bitcoin. However, his political goal is the dollarization of the Argentine economy.

The reform, which strengthens freedom of contract, at the same time reduces consumer protection, abolishes the ban on immoral contracts and generally removes the validity of commercial and contract law. This could lead to contracts becoming significantly longer and more complicated and lead to the release of surprising clauses.

The decree also allows interest rates to be agreed at any level and bank fees to be set freely. In addition, all state-owned companies are being converted into stock corporations and are to be sold, which limits the powers of states and municipalities.

If approved by Parliament, there could be a risk of lower incomes and higher prices, as the decree could even further fuel inflation. This would impact various areas such as apartment rentals, property purchases and groceries. The reform could therefore have a significant impact on the Argentine economy and also potentially influence the cryptocurrency market.