Argentina Sees First Bitcoin Rental Agreement Signed

Argentinaโ€™s first-ever Bitcoin rental contract is signed following sweeping de-regulation of contract law in the country.

A hand passing on a Bitcoin to another hand surrounded by flying documents.
Created by Gabor Kovacs from DailyCoin
  • Sweeping reforms in Argentina leads to contract deregulation.
  • Contracts can now be paid whatever the parties agree upon, including Bitcoin. 
  • A Rosario landlord signs a Bitcoin rental agreement.

Due to Bitcoinโ€™s wild volatility, it is often touted as a store of value rather than a medium of exchange. However, the medium of exchange use case may still have a valid shout as sweeping reforms by Argentinaโ€™s newly elected president, Javier Milei, give rise to the country’s first rental agreement denominated in Bitcoin.

Argentinaโ€™s First Bitcoin Rent Contract 

According to the local news outlet Pagina 12, the landlord of an apartment in Rosario, a city in Santa Fe province located 180 miles northwest of Buenos Aires, has signed a rental agreement stipulating payment in Bitcoin. This marks the first such agreement in Argentina, per finance company Fiwind.

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The tenant must pay 100 USDT to Fiwind each month, who are then tasked with converting the proceeds into Bitcoin and forwarding the payment to the landlord. According to Pagina 12, Fiwindโ€™s facilitation of this deal is at โ€œno cost.โ€

Based on the current spot Bitcoin price at the time of writing, 100 USDT converts to 0.00234 BTC. An upward move in the price of Bitcoin would mean the landlord receives less BTC, highlighting the difficulties of accepting payment in cryptocurrency when goods and services are priced in fiat (or fiat equivalent in this case). 

Despite that, this landmark agreement was made possible by a wave of deregulation enacted by President Milei, who intends to tackle the countryโ€™s ailing economy using a radical approach to policy. 

Do You Accept Payment in Milk and Beef?

Part of President Mileiโ€™s radical policy approach to overhauling Argentinaโ€™s economy was a decree that parties to a contract can agree to payment in peso, foreign currency, and Bitcoin if they choose. The policy extends to anything considered a designated payment method, with foreign affairs minister Diana Mondino giving kilograms of beef and liters of milk as examples. 

โ€œArt 766. - Obligation of the debtor. The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not,โ€ tweeted Mondino.

While liberals have celebrated Mileiโ€™s progressive approach, some Argentinians have protested the use of emergency decrees to circumvent the congressional system. This sentiment spilled into the streets of Buenos Aires in December 2023, with thousands of protestors marching to ease the โ€œausterity measuresโ€ brought about by Mileiโ€™s intention to open up the economy to free market ideals.

On the Flipside

  • Milei’s policies aim to break down socialist systems and increase market-driven efficiencies. He believes this is the optimal way to lower inflation, which came in at 161% in November 2023.
  • The Rosario rental agreement involves a third party, countering Bitcoinโ€™s peer-to-peer philosophy.
  • Companies such as Bitrefill offer an app service for Bitcoiners to pay for living expenses, enabling them to live solely on crypto. 

Why This Matters

While a small development, the Rosario rental deal signals a meaningful change in Argentina. By aligning business incentives around technology guaranteed by code, not lawmakers, Argentina moves one step closer to enabling a digital asset economy. If digital assets take root, real autonomy may follow.

Read more on Argentina legalizing the use of Bitcoin in contracts here:
Argentina Approves Bitcoin (BTC) Use in Contract Deals

Find out about the surging number of monthly active addresses on Solana here:
Solana Tops Active Wallets with 99% Month-over-Month Surge

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a reporter at DailyCoin covering market affairs. Samuel's has holdings in Bitcoin and Cardano, with other minor holdings across the market.

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