In a groundbreaking move, a landlord and tenant in Rosario, Argentina’s third-largest city, have entered into a unique rental agreement involving Bitcoin (BTC) payments. This pioneering contract marks the first of its kind in the nation, as reported by the local news source Paginal 12 on January 11.
Under this innovative agreement, the tenant will pay their monthly rent in Bitcoin, equivalent to $100. Payments will be made through Fiwind, a local cryptocurrency platform. Both parties involved in the contract are reportedly well-versed in cryptocurrency usage.
This novel approach to rental agreements has been made possible by recent legal changes under Argentina’s new presidential administration. President Javier Milei, who assumed office following the November 2023 general elections, has overseen significant amendments to the Argentine rental law and other aspects of the national legal framework. These changes come amid the country’s struggle with severe inflation.
December 2023 saw Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship, announce a decree focusing on economic reform and deregulation. This decree facilitates the use of Bitcoin and other cryptocurrencies under specific conditions.
Furthermore, the Argentine government has taken steps to simplify the legalization of overdue crypto holdings for tax purposes. A regularization scheme has been introduced, offering a flat tax rate on declared crypto assets. Taxpayers declaring their holdings by the end of March 2024 will be subject to a 5% tax, with the rate increasing to 10% in April and 15% from July until the end of September.
This innovative rental agreement in Rosario not only highlights the growing acceptance of cryptocurrencies in everyday transactions but also reflects Argentina’s proactive stance in integrating digital currencies into its legal and economic systems.