Topic: will Argentina follow El Salvador? (Read 173 times)
There was a time I was looking for the current economy situation of El Salvador to know the cost of living and inflation level with other countries but I could not get solid information so I left it. And for now Argentina has not adopted Bitcoin has the legal tender so it is still far from El Salvador. And it is not only Argentina that is on the pipeline but they are more countries like to join El Salvador to invest in bitcoin. There will be a time that, countries will compete on bitcoin investment and at that time, countries will invest heavily with big amounts and that will make bitcoin to skyrocket to the moon. For now we can say anything until we see them investing.
I just stumbled upon this news, and I find it very positive and worth sharing as it might signal that Argentina could soon follow in El Salvador’s footsteps by making Bitcoin a legal currency.
From what I’ve read before, it’s often better for countries struggling economically to adopt Bitcoin. This might be the case here, especially since El Salvador is now gaining recognition for its Bitcoin investment and has already profited more than 100% at the current price compared to its original investment.
El Salvador and Argentina Regulators Sign Agreement to Help Develop Crypto Industry
From what I’ve read before, it’s often better for countries struggling economically to adopt Bitcoin. This might be the case here, especially since El Salvador is now gaining recognition for its Bitcoin investment and has already profited more than 100% at the current price compared to its original investment.
El Salvador and Argentina Regulators Sign Agreement to Help Develop Crypto Industry
Quote
What to know:
Regulators from El Salvador and Argentina have signed an agreement to help develop the crypto industry in both countries.
The agreement will help El Salvador, which famously embraced bitcoin as a currency, broaden its footprint by forging strategic partnerships, CNAD President Juan Carlos Reyes told CoinDesk.
The two regulatory agencies will be sharing knowledge and experience in the matter of crypto regulation.
Regulators from El Salvador and Argentina have signed an agreement to help develop the crypto industry in both countries.
The agreement will help El Salvador, which famously embraced bitcoin as a currency, broaden its footprint by forging strategic partnerships, CNAD President Juan Carlos Reyes told CoinDesk.
The two regulatory agencies will be sharing knowledge and experience in the matter of crypto regulation.
I think this is just a first step which may lead to other fruitful ones in the future, the more they are into this and making the use of bitcoin affordable by enabling their country for its use, the more they will also be getting closer in making it a legal tender like the way El-Salvador did, then we could boldly say that they are learning something from them, once the people feels the accommodative presence of the government regulation on the use of bitcoin over every crypto entities there in Argentina, then it will be more acceptable and well utilized by the people and i know, every other advice will be in consideration once coming from El-Salvador.
Given Argentina's repeated problems with inflation over the last half century they need to do this. They need to do more than this, but this is a start.
So I wouldn't be surprised to see Argentina having BTC on their balance sheet as well, just like El Salvador.
Hmm, most countries are going to follow the same trend now, sooner a list of countries is gonna be on board with accepting Bitcoin in different ways, I'm shocked that MNS rejected Bitcoin for their balance sheet, not sure What's Amazon is going to do but It seems like Bitcoin is going to replace the world assets ranking for MNS soon.
Javier Milei is a libertarian who I doubt will force businesses to accept bitcoin, as El Salvador does today,
That they can buy bitcoin for their reserves I believe, but what he says in that quote is that people can use various currencies or forms of exchange. According to his ideology it will be the free market that will end up determining which one people use.
It could be just paper profit for them right now, if I'm not mistaken, Argentina has a new government under President Milei’s. Obviously though, he had a very hard task ahead of him as Argentina has been running in fiscal deficits for more than a decade now. So their economy are not that stable to say that least.
One thing to note though that Mliei is touted to be a pro-Bitcoin, like El Salvador's Bukele and that could be the similarity between the two.
https://x.com/JMilei/status/1803462625893704118
So I wouldn't be surprised to see Argentina having BTC on their balance sheet as well, just like El Salvador.
One thing to note though that Mliei is touted to be a pro-Bitcoin, like El Salvador's Bukele and that could be the similarity between the two.
https://x.com/JMilei/status/1803462625893704118
So I wouldn't be surprised to see Argentina having BTC on their balance sheet as well, just like El Salvador.
That they can buy bitcoin for their reserves I believe, but what he says in that quote is that people can use various currencies or forms of exchange. According to his ideology it will be the free market that will end up determining which one people use.
I just stumbled upon this news, and I find it very positive and worth sharing as it might signal that Argentina could soon follow in El Salvador’s footsteps by making Bitcoin a legal currency.
It is better to wait. If the news is more likely to be true, then it is good news. I don't think it will be an easy thing to happen because there will be pros and cons just like what we have seen with El Salvador.
In terms of making Bitcoin a legal tender, it is not 100% economically successful as expected if the Bitcoin owned by the country is not sold for profit. From the news, El Salvador will not be selling a large amount of Bitcoin it owns.
If that is the case, then where will the profit come from except for good economic management by the President.
It is difficult to conclude from just this piece of news, I read it and very little has actually been revealed.
What we know is that the two regulatory bodies are going to share information that they already know. Now how they are going to use this vast information, only they know.
Considering the fact that they want to join forces and bring cooperate in developing the digital assets and the fact that Argentinian president is open to bitcoin, maybe the OP's ideas will bear fruit.
What we know is that the two regulatory bodies are going to share information that they already know. Now how they are going to use this vast information, only they know.
Considering the fact that they want to join forces and bring cooperate in developing the digital assets and the fact that Argentinian president is open to bitcoin, maybe the OP's ideas will bear fruit.
The problem is can Argentina wait for that to happen because looking at the tremendous impact of inflation now Argentina is actually in great danger and any policy including adopting bitcoin will eventually have a much greater risk of exploding pros and cons in the country.
It's never too late, and they should take a different approach compared to El Salvador. They don’t necessarily need to invest in Bitcoin directly; simply making it a legal tender and implementing investor-friendly policies would already be a great step toward boosting Bitcoin adoption.
I wonder if he will do it the same way as El Salvador meaning to introduce a centralized custodial wallet like Chivo that people would have to use for their bitcoin storage and payments. Meaning full government control over people's money like the banking system that only carries the name "bitcoin".
If he doesn’t take action, then a private entity will probably step in with his approval. This is no different from exchanges, it’s a wallet that lets you convert your Bitcoin to USD and connect it to your bank account. I think it’s safe because it’s regulated, but of course, you’ll lose some privacy. That’s the trade-off when Bitcoin becomes part of a regulated system.
The point is, as long as adoption continues to grow, it’s good for the country and the overall ecosystem. Investors will benefit because the demand for Bitcoin keeps increasing, and it’s working as intended. What we can do is separate our long-term investments and think creatively to maintain the privacy we want with our holdings. That way, we balance both security and freedom.
I just stumbled upon this news, and I find it very positive and worth sharing as it might signal that Argentina could soon follow in El Salvador’s footsteps by making Bitcoin a legal currency.
Although in the end adopting bitcoin has become one of the very good alternatives but in the end looking at the current conditions it will definitely take time to gain the same momentum as El Savador if Argentina does the same thing which means it will take longer for them to be able to get the same benefits or even more as El Savador is currently getting.The problem is can Argentina wait for that to happen because looking at the tremendous impact of inflation now Argentina is actually in great danger and any policy including adopting bitcoin will eventually have a much greater risk of exploding pros and cons in the country.
El Savador can be like now having gone through such a thing at the beginning and lucky actually they are and adopted bitcoin at a price that is actually much lower when compared to now so for now the adoption of El Savador is not too much about their society, but things like this can be inversely proportional to Argentina because indeed a wave of pros and cons will definitely occur and the government must be ready to dampen it if their decision is ready to adopt bitcoin.
Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.
I think the very reason why a country would declare Bitcoin as legal tender is to attract investors. They aim to build a thriving crypto industry within their borders. Since moving money (Bitcoin) becomes much easier with such policies, investors can transfer their funds without issuesA good example is Dubai, they introduced a Bitcoin-friendly policy by removing taxes on Bitcoin transactions. Their purpose was to attract investors and innovators to their country. Similarly, if Argentina decides to make Bitcoin a legal tender, it could boost investor confidence, which would, in turn, help improve their economy. We know that if a country is poor or struggling, they need foreign investors to stimulate economic growth, so Bitcoin-friendly policies could help in achieving that.
Crypto taxation in Dubai for expats: A quick guide
One thing to note though that Mliei is touted to be a pro-Bitcoin, like El Salvador's Bukele and that could be the similarity between the two.
So I wouldn't be surprised to see Argentina having BTC on their balance sheet as well, just like El Salvador.
I wonder if he will do it the same way as El Salvador meaning to introduce a centralized custodial wallet like Chivo that people would have to use for their bitcoin storage and payments. Meaning full government control over people's money like the banking system that only carries the name "bitcoin". So I wouldn't be surprised to see Argentina having BTC on their balance sheet as well, just like El Salvador.
it’s often better for countries struggling economically to adopt Bitcoin. ~ since El Salvador is now gaining ~ has already profited more than 100% at the current price
Since El Salvador only owns/hodls bitcoin and they are not selling it, you can't really say they made a profit.Even though it is a cool development but I have to say that things are not that simple that if a country with economic problems adopts bitcoin, it would magically help. It may even cause more problems if not done correctly and without fixing other problems.
Think of it as an individual with lots of debt borrowing money to invest in bitcoin and then bitcoin crashes and they have to panic sell and be in an ever bigger debt.
If needed - of course, gov would choose their needs other than BTC. That's normal.
But El Sal and its president are smart - so they balance the situation out by that.
After he is gone - we would see how it will work out.
it’s often better for countries struggling economically to adopt Bitcoin. ~ since El Salvador is now gaining ~ has already profited more than 100% at the current price
Since El Salvador only owns/hodls bitcoin and they are not selling it, you can't really say they made a profit.Even though it is a cool development but I have to say that things are not that simple that if a country with economic problems adopts bitcoin, it would magically help. It may even cause more problems if not done correctly and without fixing other problems.
Think of it as an individual with lots of debt borrowing money to invest in bitcoin and then bitcoin crashes and they have to panic sell and be in an ever bigger debt.
Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.
I agree with you.
Truly, BTC is no magic wand, and it would be only a one-step-at-a-time type of thing - it would only help a bit in the overall situation of a country that's already in problems.
(p.s you've got a typo, probably, you repeated yourself).
From what I’ve read before, it’s often better for countries struggling economically to adopt Bitcoin.
Either a struggling economy country or not, the need to adopt Bitcoin for not just for legal tenders but upholding for investment and store of values is very necessary of considered the potentialities of Bitcoin to how it has stabilize a hope in the future for its holders.And I must say... Countries foreseeing Bitcoin as a restoration to elevate their economy system don't have to jump in to adopting it just because they have heard good news about some countries like the El Salvador being benefitting hugely at their legal adoption of Bitcoin.
Hence, due processes should be accorded by their logistics planners and their economy jurisdictions so that they don't end up crashing their economy at the course of leaning their revenue generations on Bitcoin only and mismanagement of their forebeing economy structures.
Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.
I support countries legalizing bitcoin but I want to say that making bitcoin a legal currency will not improve the economy and bitcoin is not the solution to improve the economy of any country, including El Salvador. As pooya87 said, El Salvador's economy has recovered and grown significantly in recent years because Bukele's sound economic policies have paid off. This has nothing to do with making bitcoin legal tender as they have not sold their bitcoins yet.
Additionally, there is notable news that El Salvador is looking to borrow $1.3 billion from the IMF and in return they need to change some of their policies on bitcoin. If their economy is really better off thanks to bitcoin, why do they keep borrowing money from the IMF? And I wouldn't be surprised if they acceded to the IMF's demands in exchange for a loan.
https://cryptodnes.bg/en/el-salvador-to-scale-back-bitcoin-policy-in-exchange-for-1-3-billion-imf-loan/
Additionally, there is notable news that El Salvador is looking to borrow $1.3 billion from the IMF and in return they need to change some of their policies on bitcoin. If their economy is really better off thanks to bitcoin, why do they keep borrowing money from the IMF? And I wouldn't be surprised if they acceded to the IMF's demands in exchange for a loan.
https://cryptodnes.bg/en/el-salvador-to-scale-back-bitcoin-policy-in-exchange-for-1-3-billion-imf-loan/
Almost every politician is waking up to the fact that crypto is mainstream, and is now here to stay. Most big coins are already established and aren't going anywhere. Bitcoin, Ethereum, XRP Tether Monero etc. Each have their own use cases for society.
Nothing is impossible, it seems.
From taxation and fees for BTC to reserves, and so much more.
Interesting to see whether some countries would choose to do something besides BTC.
I just stumbled upon this news, and I find it very positive and worth sharing as it might signal that Argentina could soon follow in El Salvador’s footsteps by making Bitcoin a legal currency.
From what I’ve read before, it’s often better for countries struggling economically to adopt Bitcoin. This might be the case here, especially since El Salvador is now gaining recognition for its Bitcoin investment and has already profited more than 100% at the current price compared to its original investment.
Sorry to say that doesn't mean Argentina can follow the economic growth that El Salvador is experiencing now. I mean about adoption it's a good thing but with Bitcoin currently at its highest point maybe Argentina needs more time. El Salvador is a country that has full faith in Bitcoin since the beginning, and bitcoin was at its lowest level at that time. El Salvador is now enjoying the fruits of its labor, you know yourself if someone who bought under 50K and someone who bought over 100K their fate can't be the same.From what I’ve read before, it’s often better for countries struggling economically to adopt Bitcoin. This might be the case here, especially since El Salvador is now gaining recognition for its Bitcoin investment and has already profited more than 100% at the current price compared to its original investment.
Nice and steady. And the adoption of BTC can't be done the same way in each country - Argentina needs to find its own way first and foremost. And get at other problems too, so that the BTC would even bigger cherry on top, as pooya87 said.
Nevertheless, it's a welcomed development. And I see more and more of them during this cycle.
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