In Rosario, the third-largest city in Argentina, a unique rental agreement has been struck between a local landlord and a tenant.
This groundbreaking contract marks the first instance in Argentina where monthly rent will be paid in Bitcoin.
This innovative arrangement was made possible by recent legislative changes implemented by the country’s new presidential administration.
Under the terms of this historic contract, the tenant will be responsible for making monthly payments equivalent to $100 in Bitcoin.
These transactions will be facilitated through Fiwind, a local cryptocurrency platform.
Notably, both parties involved in this contract are experienced cryptocurrency users, signaling a growing acceptance of digital currencies in the region.
The shift towards embracing cryptocurrencies in Argentina can be attributed to the reforms introduced by President Javier Milei, who assumed office after winning the general election in November 2023.
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The nation was grappling with soaring inflation rates, prompting the need for significant changes in vario
us aspects of the legal system, including rental laws.
In December 2023, Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship, announced a pivotal decree aimed at promoting economic reform and deregulation.
This decree opened the door for the utilization of Bitcoin and other cryptocurrencies within the country, albeit with certain conditions.
One of the notable changes in the regulatory landscape was the government’s efforts to facilitate the legalization of cryptocurrency holdings, even for individuals who were behind on their tax declarations.
A regularization scheme was introduced, allowing taxpayers to declare their cryptocurrency assets with a flat tax rate of 5% if done by the end of March 2024.
This rate would then increase to 10% from April and further to 15% from July until the end of September.
These recent developments signify Argentina’s growing recognition of the potential of cryptocurrencies as a viable means of conducting financial transactions and fostering economic growth.
With this groundbreaking rental agreement in Rosario, the country takes another step towards embracing the digital currency revolution, potentially setting a precedent for similar arrangements in the future.
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