The Argentine Foreign Minister has announced that financial contracts can now be denominated in Bitcoin or any other medium of exchange chosen by the parties involved. Additionally, debtors will be required to deliver the designated currency, regardless of its legal tender status in the Republic.
Pressure Mounts on Milei to Dollarize
The Argentinian Foreign Affairs Minister, Diana Mondino, has revealed that financial contracts can now be denominated in Bitcoin. Mondino stated that residents can settle contracts using any medium of exchange agreed upon by the parties involved.
These statements by a prominent member of the newly elected Argentinian government are seen as a sign of President Javier Milei's commitment to fulfilling his campaign promises. Milei, a proponent of Bitcoin, repeatedly pledged to implement significant changes if elected as the country's next president. These changes include dollarizing the economy and abolishing the central bank.
However, since his inauguration on December 10, supporters of Milei's dollarization promise, such as Johns Hopkins University professor Steve Hanke, have urged him to fulfill this commitment. Despite these demands, the president has not only rejected them but has also chosen to devalue the country's currency, the peso, by over 50%.
Return of the Barter Trade System
Mondino's statements suggest that the Argentine government no longer considers the peso as the sole legal medium of exchange.
"And also any other crypto and/or commodities such as kilograms of steel or liters of milk. Article 766 states: Obligation of the debtor. The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not," added the Foreign Minister.
Other recent measures announced by the Milei government include the reduction of fuel and transport subsidies, the streamlining of government ministries, and the modernization of labor laws.
However, some social media users have ridiculed Mondino's statements, suggesting that the government aims to emulate the Central African Republic, the only African country to adopt Bitcoin as legal tender.
One social media user, Martha Lamartha, sarcastically responded to the Foreign Minister's call for a return to a barter trade system.
"Hello Diana Pressioa, I have a friend named Trisha who is a dentist. I can arrange for you to have a dental cleaning in exchange for 5 lemons, two bags, a karate kid video cassette, and a replica of Burako the monster with the endless hole," Lamartha wrote.
What are your thoughts on this story? Let us know in the comments section below.
Frequently Asked Questions
Do You Need to Open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. You cannot recover any money you have invested. This includes investments that have been damaged by fire, flooding, theft, and so on.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items can be lost because they have real value and have been around for thousands years. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
Remember that you will not see any returns unless you are retired if you open an Account. Don’t forget the future!
Can I purchase gold with my self directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. You can speculate on future prices, but not own the metal. But, physical bullion is real bars of gold or silver that you can hold in one’s hand.
Is gold buying a good retirement option?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
The most popular form of investing in gold is through physical bullion bars. There are many ways to invest your gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you’re not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you require cash flow, gold stocks can work well.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
Statistics
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
