The first cryptocurrency-capitalized company is registered in Argentina! Complete with BTC, USDC

This site (120bTC.coM): Due to factors such as large government deficits, trade and foreign exchange controls, the South American country Argentina has long been plagued by inflation, forcing residents to turn to the U.S. dollar to protect their wealth, and the U.S. dollar stablecoin It has become a popular local medium of exchange and has made Argentina’s cryptocurrency adoption rate generally higher than other countries in the Western Hemisphere.

The first company with cryptocurrency as capital was registered in Argentina

In this context, according to Bitcoin.com, last week the Argentine Ministry of Justice reported that a company has successfully registered a company using cryptocurrency, becoming the This is the first case in the country. The Ministry of Justice said: Thanks to the modernization driven by the Ministry of Justice, we made history. We are the first country in Latin America to achieve this milestone.

It is understood that the company was founded with nearly $500 in capital, including 0.00457621 BTC and $194.99 USDC. However, unlike the registration of an ordinary company, the cryptocurrencies used for this procedure must be transferred to a wallet hosted by a domestic registered exchange (such as Lemon and Ripio) and must be kept there.

The report pointed out that in order to complete the registration, the company’s capital must be available for seizure according to law. Local Bitcoin advocate Adam Dubove emphasized that due to this regulation: only IOUs from exchanges can be used to consolidate the company's capital, not Bitcoin.

In June, Argentinian President Javier Milei confirmed his plans to create a multi-currency environment in Argentina and confirmed the possibility of using Bitcoin. “You can also use other units like WTI, BTU, whatever suits your business best,” he assessed, hinting at the possibility of adding the new currency for some of the country’s formal formalities.

Argentina’s acceptance of cryptocurrencies

Argentine President Javier Milei, who was an economist, said before he won the election last year that he would close the central bank and use Bitcoin to save the Argentine economy. The specific ideas and actions he proposed at that time included:

• Javier Milei has promoted the benefits of Bitcoin and cryptocurrency on multiple talk shows. He said that "Bitcoin can eliminate central banks."

• At the end of November last year, Javier Milei defeated Economy Minister Sergio Massa and won the election. After being elected, he once again showed his determination to close the Central Bank of Argentina (BCRA) on the X platform, saying that this was "non-negotiable" things.

• At the end of December last year, Argentina’s new Minister of Foreign Affairs and International Commerce, Diana Modino, announced on the X platform that Argentina had approved and confirmed that Bitcoin and other cryptocurrencies can be used as currencies for transactions in commercial contracts.

• In May this year, Argentina’s National Securities Commission held a formal meeting with El Salvador’s Digital Asset Agency to discuss how the country could adopt Bitcoin as a reserve currency.

Forbes: Javier Milei’s economic proposition lies in dollarization

However, whether Javier Milei is really advancing the policy of embracing Bitcoin seems to be negative at present. According to a report by Forbes in June, in fact, Javier Milei’s economic proposition is not to follow El Salvador’s example and use Bitcoin as legal tender, as widely reported in the media, but to first realize the dollarization of the economy.

Forbes continued to point out that in the meeting with El Salvador in May this year, Bitcoin was not even mentioned. Instead, the focus of the discussion between the two parties was the self-custody of crypto assets and the regulatory framework to create a good regulatory environment for cryptocurrencies. , it’s not really about using Bitcoin as the standard: Argentina’s central bank continues to deal with issues such as inflation, currency devaluation, and exchange controls, which make the idea of ​​Bitcoin as a major currency even less feasible. Banks and payment service providers are still prohibited from offering any type of crypto services or products, including Bitcoin.

But taking a step back, it is also beneficial to provide Argentina with a good regulatory environment. After all, against the background of high inflation and the continuous depreciation of legal currency, USDT and BTC have become popular choices for the local people, and Javier Milei did not deny it. Let us continue to observe the possibility of using Bitcoin in the future.

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