- A rental agreement paid in Bitcoin was enabled in Argentina following recent policy changes allowing crypto payments under President Javier Milei. This marks growing real world adoption of cryptocurrency in the country.
- The contract sets monthly rent at 100 USD worth of Bitcoin which the tenant will pay through a local crypto platform. Both parties are experienced crypto users.
- Argentina eased taxes on declaring crypto holdings and allowed crypto payments in certain conditions in December 2022. Executives believe crypto rating agencies could help rebuild trust after collapses like FTX, although ratings have limits.
Argentina has seen its first-ever rental agreement paid in Bitcoin, enabled by recent legal changes under President Javier Milei‘s administration. This pioneering contract signals growing adoption of cryptocurrency for real world transactions in the country.
ICYMI:
— BlockNews.com (@blocknewsdotcom) January 15, 2024Argentina witnessed its first rental agreement with #Bitcoin payments
Rental amount is equivialent to $100 in $BTC pic.twitter.com/CRl1x8ElxU
Monthly Rent Set at 100 USD Worth of Bitcoin
The contract sets the monthly rent at 100 USD worth of Bitcoin. The tenant will send the payments each month through Fiwind, a local crypto platform. Both the landlord and tenant are said to be experienced crypto users.
Recent Policy Shifts Enable Crypto Payments
In December 2022, Argentina’s Minister of Foreign Affairs announced a decree allowing the use of Bitcoin and other cryptocurrencies under certain conditions. The government has also eased taxes on declaring crypto holdings, with a flat 5% tax if declared by March 2024.
Execs See Potential for Crypto Rating Agencies
Some executives believe crypto rating agencies could help rebuild trust after major collapses like FTX in 2022. AI-based rating systems may now find it easier to assess crypto entity reputations. However, ratings have limits in spotting potential blowups.
Conclusion
Argentina’s economy continues to suffer from inflation, but Milei’s administration aims to enact pro-market reforms. The new Bitcoin rental contract represents a milestone for cryptocurrency real-world adoption amid these changes. Crypto rating agencies also have potential to boost transparency, although predicting collapses remains difficult. Crypto’s role in Argentina seems poised to grow following these legal shifts.
