Argentina's President Supports Provinces Launching Own Currencies; First Bitcoin-based Rental Contract Sealed in Rosario
Summary:
Argentina's President, Javier Milei, will not oppose states initiating their own currencies, a statement following a disagreement with Ricardo Quintela, Governor of La Rioja province. Quintela plans to establish a separate currency due to a 50% devaluation of the national currency and state budget cuts implemented by Milei. In related news, a landlord and tenant in Rosario city agreed on a Bitcoin-based rental contract for the first time, enabled by recent legislative changes.
Javier Milei, a known libertarian and the President of Argentina since December 2023, has voiced his intentions to abstain from blocking any efforts by state-level administrations to establish their own currencies. This comment arises from a recent public disagreement between Milei and Ricardo Quintela, the governor of the La Rioja province. During a conversation on Radio Mitre on the 14th of January, Milei publicly stated his disinclination to legally intervene against the creation of local currencies by provincial authorities within Argentina. He trustingly puts the fate of such initiatives into the hands of the market. However, Milei suspects these "pseudo-currencies" will stoke inflation, and perceives them as a potential scam for those who accept them: "Anyone accepting payments in these substitute currencies from reckless governors will inevitably find their income has decreased...What isn't taken away through fiscal adjustment will be seized through the pseudo-currency's inflation." The President's cautionary advice was in response to Ricardo Quintela's announcement. Quintela, governor of La Rioja, plans to establish an independent currency for his province. The motive behind this decision is a 50% devaluation of the national currency, imposed by Milei to control the highest inflation rate the country has seen in the last three decades. In addition, the President has reduced the financial resources distributed from the national budget to the provinces. Labeling such measures as "abandonment by the nation" and with the responsibility to cover police salaries, Quintela has put forth a request to the legislature of La Rioja to develop the legislative groundwork for the production of the local currency. In the same vein, Buenos Aires' governor, Axel Kicillof, publicly deliberated the concept of a local currency in December. Related context: Discover more about Javier Milei, Argentina's pro-market president. Meanwhile, in Argentina's third-largest city, Rosario, a unique rental agreement has been initiated between a landlord and a tenant, with the latter paying their monthly rent in Bitcoin. This contract, the first of its kind in Argentina, was enabled by recent changes in law carried out by the new presidential administration. Magazine: An insight into MakerDAO’s strategy to revive 'DeFi summer' — courtesy of Rune Christensen.
Published At
1/16/2024 12:25:22 PM
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