Argentina Breaks Through, Embraces First-Ever Rental Agreement Paid in Bitcoin
In Rosario, Argentina, a local landlord and tenant have entered into an innovative rental agreement, marking the country’s first-ever Bitcoin-based rental contract.
In fact, the move is made possible by recent legal amendments introduced by President Javier Milei‘s administration.
Under the terms of the agreement reported by local newspaper Pagina 12, the tenant will pay a monthly rent of $100 in Bitcoin (BTC). Both parties involved in the contract are described as experienced crypto users, making this arrangement a unique venture in Argentina.
This significant shift comes as a result of President Milei’s amendments to Argentine rental laws and broader legal reforms, initiated in response to the country’s ongoing struggles with rampant inflation. The president, elected in November 2023, has been pushing for economic reform and deregulation to revitalize the national economy.
To facilitate the use of Bitcoin and other cryptocurrencies, Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship, announced a decree in December 2023. The decree outlines specific conditions under which digital currencies can be utilized in the country, according to Cointelegraph.
Moreover, the government has taken steps to simplify the process of legalizing crypto holdings, even for those who have fallen behind on tax declarations.
As part of a regularization scheme, taxpayers have the opportunity to declare their crypto assets by the end of March 2024 and pay a flat tax of 5%. Subsequently, the tax rates increase to 10% from April and 15% from July to the end of September.
This new Bitcoin rental contract signifies a broader shift in Argentina’s approach to digital currencies, reflecting a growing acceptance of cryptocurrencies in various sectors of the economy.
As the country continues to navigate economic challenges, these legal reforms and innovative contracts may pave the way for broader crypto adoption in the future.
