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Historic milestone: first Bitcoin rental contract signed in Argentina

Monday, January 15, 2024 07:52 AM | Invezz via QuoteMedia

Historic milestone: first Bitcoin rental contract signed in Argentina

2024-01-15 07:52:38 ET

Alberto Fernandez

In a groundbreaking move, Argentina has witnessed the signing of the nation’s inaugural Bitcoin contract after a Bitcoin rental contract was signed in Rosario.

This development comes on the heels of President Javier Milei’s transformative decree , allowing contracts to be agreed upon in “legal tender or in foreign currency,” further confirmed by the country’s Foreign Minister Diana Mondino. The move revolutionized the Rental Law, reshaping the landscape for property agreements.

The pioneering contract, facilitated by Argentine crypto platform Fiwind, sets a precedent for embracing cryptocurrencies in real estate transactions.

Argentina’s first Bitcoin contract

In a paradigm-shifting move, the owner of an apartment in Rosario has inked the nation’s first rental contract denominated entirely in Bitcoin (BTC). The signing follows the recent repeal of Argentina’s Rental Law, ushered out by President Javier Milei’s extensive Decree of Necessity and Urgency (DNU) on December 30.

This historic agreement was made possible through collaboration with Fiwind, an Argentine finance company specializing in cryptocurrency transactions. The tenant and landlord, both experienced users of the Fiwind platform, chose this service as the exclusive medium for their Bitcoin rental payments.

As outlined in the contract, the monthly rent, equivalent to “100 Tether tokens USDT” – a stablecoin pegged to the US dollar – amounts to $100 or 0.0021 BTC. The tenant, responsible for the cryptocurrency transfer, initiates the process by converting their Argentine pesos to Bitcoin on the Fiwind platform. Subsequently, the equivalent cryptocurrency amount is seamlessly transferred to the landlord.

President Milei’s decree, allowing contracts to be agreed upon in “legal tender or in foreign currency,” has paved the way for such innovative agreements. Foreign Minister Diana Mondino further confirmed the adaptability of contracts to be “agreed in Bitcoin” and US currency.

This landmark development not only highlights the adaptability of the real estate market but also underscores Argentina’s evolving regulatory landscape. As the government eases restrictions and embraces digital currencies, it sets the stage for future financial agreements to diversify, providing individuals and businesses with newfound flexibility in their transactions

The post Historic milestone: first Bitcoin rental contract signed in Argentina appeared first on Invezz

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