Argentina to Allow Free Currency Use Including Bitcoin in 2025
Argentine President Javier Milei announced significant policy changes for 2025 to reshape the financial landscape, promoting free currency circulation and cryptocurrency-friendly regulations. These reforms will enable Argentines to transact using any currency, including Bitcoin, enhancing financial freedom.
Milei’s plan includes a 90% reduction in national taxes, allowing provinces to establish their own tax policies. This aims to decentralize economic decisions, decrease financial pressure on citizens, and foster localized economic growth.
Supporters view this policy as a means to create genuine competition between fiat currencies and cryptocurrencies. Current tax laws impose income tax on Bitcoin transactions but exempt those involving dollars or euros, discouraging Bitcoin usage. By addressing these disparities, Argentina could emulate El Salvador’s Bitcoin adoption, tailored to its specific economic conditions.
Argentina has initiated the integration of cryptocurrency into its legal and financial frameworks. In 2023, the government legalized Bitcoin contracts, facilitating broader crypto usage. Milei’s leadership strengthens this direction, positioning Bitcoin and other cryptocurrencies as vital elements of the country’s economic transformation.
While some critics worry about the regulatory burden on the crypto sector, others see Milei’s policies as essential for reducing state intervention in the economy. Ricardo Mihura, President of ONG Bitcoin Argentina, emphasized that government regulations are raising costs and compromising Bitcoin’s decentralized nature.
Argentina’s cryptocurrency adoption reflects a wider trend in South America. Brazil is developing a central bank digital currency (CBDC) in partnership with Chainlink and Microsoft, while leading the region in crypto exchange-traded funds (ETFs). Venezuela's cryptocurrency market experienced a 110% year-over-year growth in Q2 2024, reaching $11.7 billion.
South America’s increasing momentum in crypto adoption positions the region as a prospective global leader in the digital economy. Under Milei’s progressive policies, Argentina is pivotal in this transition. By encouraging competition among currencies and embracing innovative financial technologies, the country may set a benchmark for others.