Latam Insights: El Salvador Passes Bitcoin Citizenship Law, Argentina to Allow Crypto Denominated Contracts
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: El Salvador passes a Bitcoin donation citizenship law, Argentina will allow the settlement of crypto-denominated contracts, and President Milei moves to deregulate Argentina.
El Salvador Passes Bitcoin Citizenship Law
The government of El Salvador has passed a law that allows foreign investors to become Salvadoran citizens. The project, approved with Bukele’s Nuevas Ideas party majority in the Congress, offers foreigners the possibility of sidestepping the ordinary requirements to receive Salvadoran citizenship by making Bitcoin donations to social and economic programs in the country, without mentioning a determined number.
Before, the only way of becoming a Salvadoran citizen involved having five years of residence for immigrants from a non-Spanish-speaking country. On December 8, the country announced a program called “Adopting El Salvador,” which would allow foreign Bitcoin millionaires to fast-track their access to a Salvadoran Passport by investing $1 million USDT. However, the program will be available only for 1,000 applicants each year.
Argentina to Allow Crypto-Denominated Contracts
The government of Argentina will allow contracts to be settled in Bitcoin or any cryptocurrency or asset agreed between the parties involved. This is a consequence of the recent deregulation executive order that Argentine President Javier Milei inked this week.
Minister of Foreign Affairs, International Trade and Worship of the Argentine Republic Diana Mondino announced this, stating that contract payments could be settled in currencies and assets different from the Argentine peso. She stated:
We ratify and confirm that in Argentina contracts can be agreed in Bitcoin. And also any other crypto and/or items such as kilos of meat or liters of milk.
President Javier Milei Issues Mega Executive Order to Deregulate Argentina
Argentine President Javier Milei has issued an emergency national executive order modifying dozens of laws to deregulate and free the country’s economy. The order, titled “Decree of Necessity and Urgency – Bases for the Reconstruction of the Argentine Economy,” has over 360 articles and modifies several relevant aspects in the Argentine regulatory framework, including rent, pricing, and work determinations.
The decree also prepares to privatize state companies, converting them into limited companies. Milei defended his actions, stressing that they were touching elites’ interests. He explained:
They complain because they lose privileges. We make markets more competitive and end some privileges. And some who see their interests affected complain.
Due to its size and scope, the order is already being criticized, being labeled as unconstitutional by some experts who believe it could face heavy opposition in Congress, which can repeal it if both chambers decide against it with a simple majority.
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