Argentina has registered one of its first lease agreements denominated in bitcoin after the application of the emergency executive order issued by President Javier Milei, which opened the door for this kind of settlement. The agreement stipulates that the tenant must pay the $100 USDT worth of bitcoin to the property’s landlord each month.
Argentina Starts Implementing Bitcoin-Settled Lease Agreements
Argentina has reached a milestone in crypto adoption, registering one of the first contracts involving bitcoin payments. According to La Capital, a local Argentine news outlet, the first Bitcoin-settled lease agreement was recently signed in Rosario City.
The agreement stipulates that the tenant will pay the equivalent of $100 USDT in Bitcoin to the landlord each month, having selected Fiwind, a national cryptocurrency exchange, as the provider of the referential bitcoin price to execute these payments. The contract also determines that the tenant will execute these payments during the first five days of each month to an address provided by the landlord.
While there were records of real estate sales settled in bitcoin before, this is the first lease agreement of this kind, local sources state.
Diana Mondino, the Minister of Foreign Affairs of Argentina, had clarified that as a result of the application of the first mega executive order issued by President Javier Milei, which eliminated the lease and rents law, these contracts could be settled in bitcoin, in other cryptos, and also in other assets.
The executive order that enables these agreements will be reviewed by the courts of the country, which have already suspended the effects of some segments awaiting the final decision on the legality of this document. Also, the emergency executive order can be suspended if both chambers of Congress reject it.
Nonetheless, the executive order allows tenants and landlords to legally sign this kind of bitcoin-denominated lease contract that evades having to transact in Argentine pesos, the embattled and devalued national fiat currency.
Source : Bitcoin News by Sergio Goschenko / Jan 13, 2024