Argentina’s Minister of Foreign Affairs Diana Mondino has confirmed that the nation will start recognizing Bitcoin as a legally accepted currency for entering contracts.
This coincides with recent circulating reports indicating a continued decline in the value of the Argentinian currency (ARS).
Argentina Embraces Bitcoin Amidst Price Surge
In a post on X (formerly Twitter), Mondino made the announcement that citizens in Argentina will be able to use Bitcoin to enter into contract agreements within the nation.
“We ratify and confirm that in Argentina contracts can be agreed in Bitcoin.”
During the last few months, Bitcoin experienced a significant surge in price. It witnessed an increase of approximately 65.57% over the past three months, with a 20.41% jump in the last 30 days.
At the time of publication, Bitcoin’s price is $43,847.
Furthermore, she declared that other cryptocurrencies and even certain types of food can be exchanged in contracts. “Also any other crypto and/or species such as kilos of steer or liters of milk,” she stated.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Argentina’s Currency Continues Downward Trend
On December 12, President Javier Milei, declared a significant devaluation of the Argentinian currency (ARS), accompanied by reductions in energy and transportation subsidies.
The decision will result in a 50% devaluation of the Argentine peso, shifting from 400 pesos to the dollar to 800 pesos to the US dollar.
Economy Minister Luis Caputo said, “For a few months, we’re going to be worse than before.” He added that Argentina has an “addiction” to fiscal deficits. Meanwhile, Milei has said the country didn’t have time to consider other alternatives.
BeInCrypto recently reported that Argentina is suffering 143% annual inflation. Additionally, its currency has plunged in value, and four in ten Argentines are impoverished, according to reports.
Meanwhile, Argentina has averaged a 40% inflation rate per year over the last ten years.
Read more: How To Open a Bitcoin Account in 3 Easy Steps
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