Regulation
Argentina seeks lessons from Bitcoin adoption in El Salvador
The National Securities Commission of Argentina (CNV) recently met with the National Commission of Digital Assets (CNAD) of El Salvador to obtain information on Bitcoin (BTC) adoption and cryptocurrency regulationaccording to a manager report
This collaboration comes as Argentina’s political and regulatory landscape becomes increasingly pro-Bitcoin under the leadership of President Javier Milei.
On May 23, CNV President Roberto Silva, CNV Vice President Patricia Boedo and CNAD President Juan Carlos Reyes discussed El Salvador’s pioneering role as the first country to adopt Bitcoin as legal tender in September 2021 Silva highlighted El Salvador’s leadership in cryptocurrency assets, specifying:
“El Salvador has become one of the leading countries, not only in the use of Bitcoin, but has also stood out in the world of crypto assets.”
Silva also stressed the importance of learning from El Salvador’s experience, noting:
“We want to strengthen ties with the Republic of El Salvador and we will therefore explore the possibility of signing collaboration agreements with them.”
El Salvador has undertaken several Bitcoin-related projects, including Bitcoin bonds, volcano-powered Bitcoin mining, and a citizenship investment program by Bitcoin.
As of mid-May, the country had mined 474 BTC using volcanic energy and held more than 5,750 BTC, according to sources. The CNAD was created to oversee and improve these crypto operations, a model that Argentina wishes to follow.
Argentina’s progressive approach
Argentina’s interest in El Salvador’s experience coincides with its own moves to regulate the local cryptocurrency market. Recently, Argentina’s largest electricity company, YPF Luz, has partnered with Genesis Digital Assets Limited (GDA) to establish a new Bitcoin mining facility using stranded gas for power generation.
In April, the Argentine CNV implemented registration requirements for crypto companies, signaling a proactive regulatory approach. In November, Argentina created the Register of Virtual Asset Service Providers to regulate the local crypto sector.
The government’s move toward regulating cryptocurrencies has further accelerated with the election of pro-Bitcoin politician Javier Milei as president in late 2023. Milei’s administration has demonstrated openness to adoption of cryptocurrencies, with plans to legalize their use for payments under certain conditions.
Indeed, Diana Mondino, Minister of Foreign Affairs, International Trade and Worship of Argentina, referred to a decree legitimizing the use of specific assets in contracts and for payments, including Bitcoin, in a X job on December 21.
Looking forward
Interestingly, Argentine President Milei received support from the CEO of You’re here (NASDAQ: TSLA) Elon Musk, who predicted a period of prosperity for the country after Milei’s victory, as Finbold reported late November.
As Argentina explores avenues for crypto integration, collaboration with El Salvador provides a strategic opportunity to leverage the latter’s pioneering crypto initiatives.
This partnership highlights the global importance of cryptocurrency adoption and the growing importance of regulatory frameworks to effectively govern digital assets.
Meanwhile, Bitcoin was changing hands at $68,188, down 0.12% on the day and up 7.7% on its monthly chart, according to the latest information retrieved on May 28.