According to Cointelegraph: A landlord and a tenant in Rosario, Argentina's third-largest city, have reportedly sealed a one-of-a-kind rental agreement involving Bitcoin. The agreement, thought to be the first of its kind in Argentina, was made possible by recent legislative amendments introduced by the nation's new administration.
Under this innovative contract, the tenant is obliged to pay a monthly rent of $100 equivalent in Bitcoin through Fiwind, a local cryptocurrency platform. Interestingly, both parties involved in this contract are experienced cryptocurrency users. This transaction, as reported by local newspaper Pagina12, represents a distinct shift in the traditionally cash-based rental market.
President Javier Milei's administration, which took the helm after the November 2023 general elections, has since reformed several aspects of Argentina's legal system, including the country's rental law and cryptocurrency regulations. These amendments, launched amid a period of rampant inflation, are expected to stimulate economic activity and enhance the nation's global trade position.
Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship, further affirmed in December 2023 that a decree encouraging economic reform and deregulation would enable the use of Bitcoin and other cryptocurrencies in Argentina, given certain conditions.
Moreover, the government has simplified the legalization process for overdue cryptocurrency holdings in relation to tax declarations. Under the new arrangement, taxpayers declaring holdings before the end of March 2024 will pay a flat tax of 5%, with the rate increasing incrementally to 10% from April and 15% from July through September. This notable move is suggestive of Argentina's growing embrace of digital currencies and the wider potential for adoption in ordinary transactions, such as rental agreements.
