Bitcoin: Argentina and El Salvador Engage in BTC Adoption Talks

According to an official report from the National Securities Commission of Argentina (CNV), regulators from Argentina met with their counterparts in El Salvador to discuss Bitcoin (BTC) adoption. Argentinian officials from the CNV met with El Salvador’s National Digital Assets Commission last week to learn how the government regulates BTC.

CNV President Roberto Silva and the regulator’s Vice President Patricia Boedo met with Juan Carlos Reyes, the President of El Salvador’s National Commission for Digital Assets (CNAD). As per the report, both nations are forming an ‘alliance, with Bitcoin at the center of the conversation.‘

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Silva stated, ‘El Salvador has emerged as one of the leading countries, not only in the use of Bitcoin, but also in the [wider] world of crypto assets.‘ The CNV President further added, ‘We want to strengthen ties with El Salvador. So we will explore the possibility of signing collaboration agreements with [the Salvadoran government].‘

Reyes highlighted that the CNV ‘wants to work with the [digital asset] industries efficiently and create appropriate regulation.‘

Will Bitcoin boost Argentina’s economy?

Argentina’s economy has taken a serious toll over the last few years. Inflation in the country has risen by triple-digit percent. According to an official report, economic activity in the country fell 8.4% in March from a year earlier. The decline marked the fifth monthly drop in a row and the steepest fall since 2020.

Argentina elected Javier Milie as the new president in November 2023. Milie is a strong Bitcoin (BTC) advocate and expressed a desire to dollarize the Argentine economy while rejecting an invitation to join the BRICS (Brazil, Russia, India, China, South Africa) alliance. However, Milie has made headlines recently for favoring BTC over the US dollar.

Also Read: BRICS: Argentina Ditching US Dollar for Bitcoin

It is possible that Bitcoin’s (BTC) recent resurgence may have prompted the new president to rethink his strategy. El Salvador is sitting on a nearly $84 million profit after BTC’s recent run to an all-time high in March.