- Argentines elected pro-Bitcoin candidate Javier Milei as president.
- Calls are growing for Argentina to adopt cryptocurrency at the state level.
- Samson Mow reveals tentative plans to meet with Milei to discuss Bitcoin.
Since El Salvador boldly adopted Bitcoin as a legal tender in September 2021, the vision of nation-states steadily formalizing BTC as real-world money has largely stalled out. While the Central African Republic followed El Salvador’s lead in April 2022, lawmakers in the country reversed course less than a year later.
However, with Argentines electing Bitcoin supporter Javier Milei as their new president on Sunday, hopes are growing that Argentina will be next to adopt BTC at the nation-state level. With that in mind, Jan3 CEO Samson Mow told Forbes that plans are in place to make that a reality.
Bitcoin X Argentina
Speaking to Forbes, Mow stated that tentative plans are forming to meet with Milei in person to discuss cryptocurrency integration. This meeting is penciled in for Q1 2024, having already established contact with Milei prior to his decisive election victory, revealed Mow.
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Pre-empting the generally negative public image of cryptocurrency, the Jan3 CEO mentioned that nation-state adoption does not necessarily have to replicate El Salvador’s full-on legal tender model. Instead, Argentina could give individuals the option to use BTC or USDT for payment, if they choose.
“What this means is the Argentinian people can simply use whatever money they want, including Bitcoin and USDT, which are massively popular in the country. I believe his concept would serve Bitcoin just as well as making it legal tender,” explained Mow.
In April, Mow addressed the Mexican Congress and explained that there are three ways in which nation-states can adopt BTC. The first and least intensive way is to add BTC as a treasury asset. The second way is to introduce pro-Bitcoin bond and mining legislation. The third and most integrative way is to make BTC a legal currency.
However, many global bodies dismiss the argued benefits of Bitcoin as legal tender, including the International Monetary Fund (IMF,) which raises concerns about crypto integration impacting the role of central banks.
IMF Says No
The IMF believes granting Bitcoin official legal tender status could undermine central banks’ ability to carry out effective monetary policy. A recent IMF press release argued that widespread crypto adoption would weaken central banks’ control over money supply and interest rates. It stated that crypto as a legal tender also enables capital flight regardless of capital controls.
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Moreover, the IMF drew issues with Bitcoin integration presenting legacy system fiscal risks since volatility leaves exposure to price movements. At the same time, without clear crypto tax policies, the scope for tax evasion widens. As such, the IMF recommends countries not to grant crypto assets official currency or legal tender status.
On the Flipside
- Milei pledged to dollarize the Argentine economy, not make BTC legal tender.
- The US dollar has lost 98% of its purchasing power since 1971, which was when President Nixon “temporarily” suspended the convertibility of fiat to gold.
- Lawmaker Joana Cotar is pushing BTC legal tender legislation in Germany.
Why This Matters
El Salvador is the first and only country to have BTC as legal tender, symbolizing the struggle ahead in terms of nation-state adoption. While Argentina’s Milei has not made any commitment to adopt BTC, joining El Salvador would signal a turning point for more countries to follow suit.
Learn more about the growing calls for Argentina to adopt Bitcoin here:
Calls For Bitcoin Legal Tender Grow After Milei’s Victory
Find out the KyberSwap’s brazen on-chain messages during the $47M heist here:
KyberSwap Attacker Taunts Protocol With Step-By-Step Guide
