Argentinian Regulators Talk Bitcoin with El Salvador Authorities

[zasad@]

https://cryptonews.com/news/argentinian-regulators-talk-bitcoin-with-el-salvador-authorities.htm
"Argentinian regulators have been talking to their counterparts in El Salvador about Bitcoin (BTC) adoption, the National Securities Commission of Argentina (CNV) confirmed this weekend.

Per an official notice from the Argentinian CNV and a report from Criptonoticias, top officials met the head of El Salvador’s National Digital Assets Commission last week."

[YOSHIE]

Per an official notice from the Argentinian CNV and a report from Criptonoticias, top officials met the head of El Salvador’s National Digital Assets Commission last week."

I read the meeting between Argentina and El Salvador, in this meeting I came to a conclusion and this will have a positive impact on Bitcoin in the future, both in terms of the law and the rules that apply to Argentina towards its users.

For example: topic discussion.

The main topic of conversation focused on El Salvador's experience in adopting Bitcoin as legal tender, as well as the regulatory aspects that accompany it. Silva praised El Salvador's move to form a special commission to handle crypto assets. "The formation of CNAD shows El Salvador's expertise in the field of crypto assets, and this experience is very valuable for CNV today," said Silva, quoted by Cointelegraph.

I believe this will have a good impact on Bitcoin in the future.

This meeting gave rise to speculation regarding the existence of a regulatory agreement regarding Bitcoin in the future. This is because Argentina is looking for ways to maximize the potential of crypto assets as the value of its currency is eroded by inflation. Argentina wants to learn from El Salvador's experience as the first country to make Bitcoin an official means of payment.

I hope that other countries can follow in El Salvador's footsteps.

[yhiaali3]

Good news, I don't know if Argentina is in the process of officially adopting Bitcoin as El Salvador did. Perhaps it is just in the process of seeing, as Argentine officials have stated that they want to "know more" about the Salvadoran government's experience in adopting Bitcoin as legal tender.

This does not mean that Argentina is necessarily moving towards adoption, but perhaps they want to explore the experience of El Salvador to find out the positives and negatives that occurred during adoption. This exploration will be useful for Argentina in making the decision to adopt or at least legislate more open laws regarding Bitcoin and cryptocurrencies.

Although President Javier Miley is a supporter of Bitcoin, the economic situation in Argentina is different from that in El Salvador, in addition to the pressure of the International Monetary Fund on Argentina to create stricter regulations towards cryptocurrencies. Therefore, I think that the decision to officially adopt Bitcoin as legal tender in Argentina is difficult, at least for the time being.

[avikz]

The current president of Argentina is a Bitcoin supporter. In fact, bringing Bitcoin into Argentina was one of his promises before the election.

https://blockworks.co/news/argentina-milei-bitcoin-president

It's great to see some movement there. I hope Argentina will be able to gain some useful insights from the team at El-Salvadore which will help them to frame a favorable regulations around crypto in Argentina.

[blckhawk]

The current president of Argentina is a Bitcoin supporter. In fact, bringing Bitcoin into Argentina was one of his promises before the election.

https://blockworks.co/news/argentina-milei-bitcoin-president

It's great to see some movement there. I hope Argentina will be able to gain some useful insights from the team at El-Salvadore which will help them to frame a favorable regulations around crypto in Argentina.

Yes and I think that this man will be the best one for the bitcoin adoption here in the forum it's most likely that they're going to see some big changes when Argentina finally adopts bitcoin as a currency in there, and the effect would be much bigger than that of El Salvador's adoption because Argentina is a pretty big country compared to El Salvador, more people being exposed to bitcoin means that there are more people that will be curious about investing in it and with that, it will benefit bitcoin because it will increase the global demand of bitcoin even more and with more demand comes bigger and unexpectedly higher prices, I'm pretty sure that bitcoin will be surprising us even more.

[Poker Player]

It would be good news if Argentina were to approve a more favorable regulation for Bitcoin. I don't think Milei ever talked about making it legal tender as in El Salvador but it is possible to implement favorable legislative measures for holders and attract investment without declaring it legal tender. Hopefully something good will come out of this.

[zasad@]

It would be good news if Argentina were to approve a more favorable regulation for Bitcoin. I don't think Milei ever talked about making it legal tender as in El Salvador but it is possible to implement favorable legislative measures for holders and attract investment without declaring it legal tender. Hopefully something good will come out of this.

Bitcoin is legal in El Salvador, but through a custodial wallet. Argentine authorities want to do the same. This is not freedom and even if my country legalizes bitcoin in this way, I will not have them use bitcoin on a custodial wallet.

It's a whole problem for businesses in the US as well. Crypto is not banned, but your coins by law must be held by a custodian. Only some states want to allow non-custodial storage for businesses, but maybe that's an election promise that won't become law.

[Fiatless]

It would be good news if Argentina were to approve a more favorable regulation for Bitcoin. I don't think Milei ever talked about making it legal tender as in El Salvador but it is possible to implement favorable legislative measures for holders and attract investment without declaring it legal tender. Hopefully something good will come out of this.

Bitcoin is legal in El Salvador, but through a custodial wallet. Argentine authorities want to do the same. This is not freedom and even if my country legalizes bitcoin in this way, I will not have them use bitcoin on a custodial wallet.

I don't think there is any law that forbids El Salvadorians from using noncustodial wallets. Chivo Wallet was first used when Bitcoin was earlier introduced but people are free to use any wallets they choose. I just checked some sources and discovered that many non-custodain wallets can be freely used in the first country that made Bitcoin a legal tender.

It's a whole problem for businesses in the US as well. Crypto is not banned, but your coins by law must be held by a custodian. Only some states want to allow non-custodial storage for businesses, but maybe that's an election promise that won't become law.

I know that the US government is attacking privacy tools like mixers and conjoin services but I am not aware that non-custodial wallets are banned in the US. Maybe providing a source to this claim might help me learn more about the situation in the US.

[bbc.reporter]

Similar to what was already mentioned before. The whole South America might begin to adopt bitcoin as an action against the IMF and the World Bank. This act is not to entirely stop from taking loans from these global lenders, however, this is to stop these lenders from taking much of the negotiating power. I reckon as bitcoin adopters, these countries can take their good policies on the cryptospace further by also adopting DeFi. If enough countries adopt DeFi, they can lend and borrow from each other pumping total value locked to trillions of American dollars. This will certainly make the head of the new mayor of bitcoin turn to DeFi heheheh.


Larry Fink, the new mayor of bitcoin

[Poker Player]

I don't think there is any law that forbids El Salvadorians from using noncustodial wallets. Chivo Wallet was first used when Bitcoin was earlier introduced but people are free to use any wallets they choose. I just checked some sources and discovered that many non-custodain wallets can be freely used in the first country that made Bitcoin a legal tender.

I don't think so either. It is one thing for Chivo to be the wallet that has the official backing and another to ban other types of wallets, which would go against the philosophy of bitcoin. And not only would we have found out about it a long time ago, but it would have caused a huge uproar in the community.

[Z-tight]

Similar to what was already mentioned before. The whole South America might begin to adopt bitcoin as an action against the IMF and the World Bank.

I don't agree, and i have seen nothing to indicate that the 'whole' South America may begin to adopt BTC, by adoption i believe you mean making it a legal tender, because BTC is already adopted and used in many countries in South America, just that it isn't a legal tender. Even if we agree that what you said is the case, how will it be an action against the IMF and the World Bank?

This act is not to entirely stop from taking loans from these global lenders, however, this is to stop these lenders from taking much of the negotiating power.

How will adopting BTC stop this from happening?

[bbc.reporter]

@Z-tight. It was a speculation and agreed that it might also not happen. However, I disagree that there is no indication. El Salvador's adoption of bitcoin as legal tender is the first indication and these occurrences where other countries begin having discussions about bitcoin being legal tender in these other countries is also another indication. I predict that we might witness another South American country adopt bitcoin as legal tender before 2030.

On taking much of the negotiating power away from global lenders similar to the IMF and the World Bank. Bitcoin as legal tender can take away the source of their power. What is the source of their power? This comes from the usage of their currency as the only method of transactions used. Bitcoin as legal tender gives people a choice and the freedom to use an open currency.

The IMF also does not like bitcoin, this is why third world countries should make it legal tender hehehehehe. They will use the fud that financial integrity might be broken to make us afraid. However, it is bitcoin that will certainly give financial integrity in an economy because this is not controlled by a corrupt group of devils.



The International Monetary Fund (IMF) has urged El Salvador to reverse its decision to make Bitcoin legal tender.

The IMF has warned President Nayib Bukele of the risks the cryptocurrency poses to the country, stressing that it would be difficult to get a loan from the institution.

The board's directors have now "urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin's legal tender status", according to a statement.

They highlighted the "large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection" and with issuing Bitcoin-backed bonds.

Read in full https://www.bbc.com/news/world-latin-america-60135552

[Z-tight]

However, I disagree that there is no indication. El Salvador's adoption of bitcoin as legal tender is the first indication and these occurrences where other countries begin having discussions about bitcoin being legal tender in these other countries is also another indication. I predict that we might witness another South American country adopt bitcoin as legal tender before 2030.

So many people believed that by now one or two other countries would have made BTC a legal tender after El Salvador did so in 2021, but none so far, only CAR tried it, and failed totally. Take note that BTC may be a legal tender in El Salvador, but people over there hardly use BTC and some people already call it a failure in that country. 2030 is ~ 6 years from now, and honestly i cannot see any other country making BTC a legal tender within this time.

On taking much of the negotiating power away from global lenders similar to the IMF and the World Bank. Bitcoin as legal tender can take away the source of their power. What is the source of their power? This comes from the usage of their currency as the only method of transactions used. Bitcoin as legal tender gives people a choice and the freedom to use an open currency.

Even if BTC becomes a legal tender, it doesn't mean it becomes the currency for international trading, the U.S dollar is the world's reserve currency, and even El Salvador still borrows money from the world bank in U.S dollars, nothing changed as regards that. BTC is a free currency that allows people control their own money, but it does not and cannot influence borrowing or repayment of loans from institutions like the World Bank.

[bbc.reporter]

@Z-tight. We will wait and we will witness this or we might not and I will be wrong. However, the argument is on the countries in South America that are starting discussions on bitcoin. What are these people talking about when they discuss this? I speculate that this might be tactics and strategies on how to use bitcoin for their advantage against the IMF and World Bank similar to Nayib Bukele of El Salvador.

On your international trading argument, agreed. However, my argument is about having a new type of freedom for ordinary people to choose between bitcoin and fiat legally without being afraid of criminalization. The power of fiat will decrease from the creation of this choice.

[Z-tight]

On your international trading argument, agreed. However, my argument is about having a new type of freedom for ordinary people to choose between bitcoin and fiat legally without being afraid of criminalization. The power of fiat will decrease from the creation of this choice.

Take note that the 'power of fiat hasn't decreased in El Salvador', and BTC doesn't have to be a legal tender for people to use it. However, i get you, because if it is a legal tender, then all merchants are obliged to accept it. BTC gives freedom, no doubt about it, and i am totally pro BTC, but i just don't believe that we are about to see BTC dominating over fiat in terms of a payment method, it won't happen, BTC will remain an alternative. But we can leave it at this right now, friend.

[bbc.reporter]

On your international trading argument, agreed. However, my argument is about having a new type of freedom for ordinary people to choose between bitcoin and fiat legally without being afraid of criminalization. The power of fiat will decrease from the creation of this choice.

Take note that the 'power of fiat hasn't decreased in El Salvador', and BTC doesn't have to be a legal tender for people to use it. However, i get you, because if it is a legal tender, then all merchants are obliged to accept it. BTC gives freedom, no doubt about it, and i am totally pro BTC, but i just don't believe that we are about to see BTC dominating over fiat in terms of a payment method, it won't happen, BTC will remain an alternative. But we can leave it at this right now, friend.

However, we should also take another note that their people in El Salvador have the freedom to use bitcoin without being identified as something similar to a criminal. On these types of government, the IMF and the World Bank should reconsider their power because they do not anymore have the same power as they had before the official adoption of bitcoin as legal tender. I agree that bitcoin will remain only as an alternative, however, it is a legal alternative, regulated that and accepted as payment everywhere in the country.

[Fiatless]

However, we should also take another note that their people in El Salvador have the freedom to use bitcoin without being identified as something similar to a criminal. On these types of government, the IMF and the World Bank should reconsider their power because they do not anymore have the same power as they had before the official adoption of bitcoin as legal tender. I agree that bitcoin will remain only as an alternative, however, it is a legal alternative, regulated that and accepted as payment everywhere in the country.

Not just in El Salvador, people are free to use Bitcoin as as a currency in different countries of the world without restrictions. In my country Bitcoin is not illegal, so I can use it for payments of goods and services. The only difference is that in El Salvador, the law mandates everyone and all businesses to accept it. While in other countries acceptance is optional and based on the agreement between parties. IMF and World Bank still have powers over countries that apply for financial assistance or loans. Any country that doesn't want to be influenced by these international lending organizations would have to avoid their financial assistance. No doubt Bitcoin is a legal alternative but not everywhere in the world because it is banned or restricted in some countries.

[pakhitheboss]

Similar to what was already mentioned before. The whole South America might begin to adopt bitcoin as an action against the IMF and the World Bank. This act is not to entirely stop from taking loans from these global lenders, however, this is to stop these lenders from taking much of the negotiating power. I reckon as bitcoin adopters, these countries can take their good policies on the cryptospace further by also adopting DeFi. If enough countries adopt DeFi, they can lend and borrow from each other pumping total value locked to trillions of American dollars. This will certainly make the head of the new mayor of bitcoin turn to DeFi heheheh.

I do think they should adopt Bitcoin fast if they want to get out of the clutches of the financial institutions backed by the US. But, wait a minute, last year Bitcoin spot ETFs got approved which means some of the big financial institutions in the world now hold more Bitcoin than some countries that are planning to declare Bitcoin a legal tender.

The US is far smarter than a few politicians in the South American countries. I do not think that Bitcoin can resolve everything in these South American countries unless they become a saint or noncorrupt. These countries have a past which is full of internal conflict and greed was the main reason. The rich remained rich but the poor struggled, resulting in migration to the US. The situation will never change unless they as in the politicians want it to change.

To an extent, the president of El-Salvadore has been able to do it with his reforms and his laws. The crime rate in that country has now gone down which anyone can see by doing a Google search. When the crime goes down, tourists from the globe and the US will come to enjoy which will help the country with the dollars they need and the Bitcoin reserve will increase.

[bbc.reporter]

@Fiatless. Agreed. Bitcoin does not really need an approval from the government to be used by anyone. However, there are differences between a government that is using regulation through enforcement, a government that is unconcerned and a government that officially adopts bitcoin by creating a laws to make it legal tender.

I shake my head on the people who doubt the power of a united South America under the adoption of bitcoin as legal tender.

@pakhitheboss. I agree that it is a complicated circumstance, however, I am not arguing about this. I am arguing about the negotiating power of the IMF and the World Bank and how El Salvador's adoption of bitcoin as legal tender has decreased this on the negotiation table.

[pakhitheboss]

@pakhitheboss. I agree that it is a complicated circumstance, however, I am not arguing about this. I am arguing about the negotiating power of the IMF and the World Bank and how El Salvador's adoption of bitcoin as legal tender has decreased this on the negotiation table.

I am unsure how Bitcoin as a legal tender will give El-Salvadore an upper hand on the negotiation table. This is a complicated situation and only the President or his financial advisory team will know. I can only comment that in a way IMF and the World Bank are controlled by the US and as of now some of its most powerful financial institutions have the biggest bag of Bitcoin. This will only give an upper edge to the US government in controlling countries like EL-Salvadore as the government can ask those financial institutions to create a few market dips which is quite possible as to regain control. Bitcoin is still decentralized by its nature but these powerful institutions are slowly taking control by buying more and more from the market. I read somewhere and I am sorry I can not post the link but most exchanges are now not having as much Bitcoin as they used to have before the spot ETF approvals.