New Argentina President Legalizes All Foreign Currencies For Payment – Including Bitcoin
On Tuesday in a surprise move, Argentina’s newly elected president Alberto Fernández announced the legalization of all foreign currencies in the country, including Bitcoin, for certain transactions. The decision is part of the government’s economicane programs to reduce the ballooning fiscal deficit.
The newly elected president followed through on his campaign promise of reducing the reliance of the peso, providing Argentines with the opportunity to use alternative currencies for goods and services. With the decree, Bitcoin, along with the U.S. dollar and euro, are now allowed for transactions without the need of a local bank account.
The move is seen as a step towards financial inclusion in the country, with a larger proportion of retail transactions taking place in alternative currencies. Since the peso has experienced a sharp decline over the past year, the demand for cryptocurrencies has been steadily increasing as foreign payments become more attractive for businesses.
It will be interesting to see how the decision affects the local economy. Earlier this year, the Argentine Central Bank reportedly held a meeting to discuss the potential risks that cryptocurrencies could bring to the country, even despite its booming economy.