Argentine authorities are working with El Salvador, a pioneering nation in bitcoin adoption, aiming to boost cryptocurrency adoption in Argentina.

High-ranking officials from Argentina's National Securities Commission (CNV), the country's securities regulator, met with El Salvador's National Commission of Digital Assets on May 23 to discuss the use of cryptocurrencies, according to an official announcement by the CNV. The talks focused on El Salvador's experience in adopting bitcoin and its regulatory framework.

"El Salvador has emerged as one of the leading countries, not only in the use of bitcoin, but it has also stood out in the world of crypto assets. It has created a specific commission, the National Commission of Digital Assets (CNAD), and therefore has an experience that is very valuable for the CNV at this time," said Roberto E. Silva, president of the CNV.

Under President Nayib Bukele, El Salvador made history by becoming the first country to adopt bitcoin as legal tender in September 2021, using it alongside the U.S. dollar. At the same time, the country launched Chivo Wallet, a government-backed digital wallet, and gave $30 worth of bitcoin to citizens who signed up for it.

Since then, El Salvador has embarked on several ambitious projects to promote bitcoin use, including creating a bitcoin city powered by geothermal energy, issuing bitcoin bonds, and offering expedited citizenship to bitcoin investors.

To date, the country has mined 474 bitcoin and holds 5,756 bitcoin, valued at just under $400 million, according to a website that tracks El Salvador's bitcoin portfolio. Bukele has said he plans to keep growing El Salvador's holdings by buying one bitcoin every day.

In recent years, Argentina has also seen a surge in cryptocurrency adoption as its citizens seek refuge from the peso's depreciation and soaring inflation. And since Javier Milei became president of Argentina last year, the crypto sector has seen positive developments. Just a month after Milei took office, Minister of Foreign Affairs Diana Mondino legalized the use of bitcoin for settling contracts.

"We want to strengthen ties with the Republic of El Salvador, and therefore, we are going to explore the possibility of signing collaboration agreements with them," Silva said about the recent meeting. The meeting follows a visit in March by CNV Vice President Patricia Boedo to El Salvador to discuss regulatory issues, indicating the interest of both countries in reaching some kind of agreement on crypto assets.

News of this collaboration between the two countries sent ripples through the crypto market, pushing bitcoin's value past the $70,000 mark. A formal partnership between Argentina and El Salvador could signal a major shift in Latin America's approach to digital assets, paving the way for broader crypto adoption.

Source : Reason / May 31, 2024