Key Developments:

• Argentina registers its first lease agreement settled in Bitcoin, following President Javier Milei’s executive order.
• The agreement involves a monthly payment of $100 USDT worth of Bitcoin.

A New Era for Bitcoin in Argentina

Yello Paradisers! Argentina has taken a significant step in cryptocurrency adoption by registering one of its first lease agreements denominated in Bitcoin. This groundbreaking development in Rosario City comes after

President Javier Milei’s emergency executive order, which facilitates such settlements. The tenant in this pioneering agreement is required to pay an amount equivalent to $100 USDT in Bitcoin each month to the landlord.

Implementing Bitcoin in Real Estate Transactions

This lease agreement marks a notable shift in Argentina’s approach to cryptocurrency, particularly in the real estate sector. The tenant has chosen Fiwind, a national cryptocurrency exchange, to provide the reference Bitcoin price for monthly payments. These payments are to be made within the first five days of each month to a specified address belonging to the landlord.

A First of Its Kind

While there have been instances of real estate sales completed with Bitcoin in Argentina, this agreement is the first recorded lease to be settled in the cryptocurrency. This move signifies a growing acceptance and integration of digital currencies in everyday transactions.

Legal Framework and Future Implications

Diana Mondino, Argentina’s Minister of Foreign Affairs, explained that the mega executive order issued by President Milei, which abolished the lease and rents law, allows for contracts to be settled in Bitcoin, other cryptocurrencies, or different assets. However, the legality of this executive order is under review by the country’s courts, with some segments currently suspended pending a final decision. Congress also has the power to suspend the order.

Bitcoin as an Alternative to the Argentine Peso

This executive order opens the door for tenants and landlords to legally engage in Bitcoin-denominated lease contracts. This is particularly significant in Argentina, where the national fiat currency, the Argentine peso, has faced devaluation and economic challenges. By allowing transactions in Bitcoin, these contracts offer an alternative to transacting in the troubled local currency, providing a more stable and globally recognized payment method.