Argentina Seeks Inspiration from El Salvador’s Bitcoin Triumph

Argentina is looking to El Salvador’s experience with Bitcoin to explore ways to integrate the pioneer cryptocurrency into its financial system.

In a recent meeting with El Salvador’s National Commission for Digital Assets, Argentina’s National Securities Commission officials highlighted their interest in learning from the Central American nation’s pioneering efforts.

“El Salvador has emerged as one of the leading countries, not only in the use of bitcoin, but has also stood out in the world of crypto assets,” said Dr. Roberto E. Silva, president of the CNV. He praised El Salvador’s establishment of a dedicated regulatory body, the CNAD, indicating Argentina’s desire for similar expertise.

Dr. Patricia Boedo, vice president of the CNV, echoed this sentiment, emphasizing the importance of strengthening ties with El Salvador “a pioneer in the subject, and that has vast experience in the subject.”

Max Keiser, the Senior Bitcoin advisor to El Salvador’s President Nayib Bukele, further shed light on the discussion, clarifying that the focus was not on adopting crypto but rather on leveraging Bitcoin’s anti-inflationary properties against fiat currency instability.

In a preceding tweet, Keiser had emphasized the need for Argentina to follow suit, advocating for the legalization of Bitcoin as legal tender and the crackdown on fraudulent practices surrounding other cryptocurrencies until such measures are taken.

 “Milei’s mission to save Argentina only starts when he makes Bitcoin legal tender and outlaws frauds & scams like ETH, web3, NFT’s, ICO’s, ADA, etc Until he does that, he’s just making the situation worse. The Bukele model works.” Keiser stated.

The meeting between Argentina and El Salvador comes amidst a global shift towards embracing cryptocurrencies amidst ballooning inflation. Argentina’s interest in El Salvador’s Bitcoin journey is particularly timely, given President Javier Milei’s pro-Bitcoin stance. Notably, Milei’s election last November marked a significant turning point, with Argentina officially legalizing the use of Bitcoin and other cryptocurrencies for contract settlements and payments. 

In February 2024, President Milei’s administration scrapped taxes on crypto holdings, except capital gains above a certain threshold. However, the formal proposal to make Bitcoin legal tender in Argentina remains pending, leaving room for speculation on whether the country will follow in El Salvador’s footsteps.

That said, Argentina is drafting an executive order to oversee cryptocurrency service providers and avoid the Financial Action Task Force’s (FATF) greylist. According to sources familiar with the matter, this move would place crypto service providers under the jurisdiction of the national securities watchdog for regulatory supervision.