Innovative Change in Argentina’s Contract Law
Argentina has made a groundbreaking change to its contract law, now allowing agreements to be executed in various currencies, including cryptocurrencies like Bitcoin, and in unconventional units such as kilograms of beef and liters of milk. This change was confirmed by Foreign Minister Diana Mondino via a social media post.
President Milei’s Decree Revolutionizes Financial Transactions
The new measures, introduced by President Milei through a Decree of Necessity and Urgency (DNU), amend the Civil and Commercial Code that was enacted in 2015. These amendments align more closely with the provisions of the previous Civil Code, stipulating that debts incurred in a specific currency or unit are to be repaid in the same.
Article Amendment Expanding Monetary Transactions
The revised article, which was Article 766 in the current Civil and Commercial Code, expands the possibilities for monetary transactions. It recognizes the coexistence of various currencies and units within Argentina’s economy, regardless of their legal tender status in the Republic. This allows for a greater diversity in economic transactions and acknowledges the growing significance of digital currencies in the global financial landscape.
Implications of the New Legal Framework
This legal reform by the Argentine government marks a significant shift towards embracing digital currencies and diversifying economic transactions. It reflects the evolving dynamics of global financial practices and Argentina’s openness to innovative financial solutions. The inclusion of cryptocurrencies and non-traditional units like beef kilograms and milk liters in contracts could potentially open up new avenues for commerce and trade within and beyond Argentina’s borders.