Breaking new ground in Argentina, local media reports on January 11, 2024, revealed the registration of a rental agreement denominated in Bitcoin in Rosario, the country’s third most populous city.
The terms of the contract outline that the tenant is obligated to pay the landlord the equivalent of $100 in BTC each month. Facilitating this unique arrangement, Fiwind, a national cryptocurrency exchange, will determine the exchange rate and handle the payment transactions.
This innovative rental agreement became feasible following an executive order issued by President Javier Milei in the previous year, which paved the way for contracts to be denominated in cryptocurrencies. While Bitcoin has been utilized in real estate transactions previously, this marks the first documented instance of its application in an Argentine rental agreement.
Reflecting on the executive order, Foreign Minister Diana Mondino emphasized last month that lease agreements are now permissible not only in Bitcoin but also in various other cryptocurrencies and assets. Nevertheless, it’s crucial to note that the executive order faces legal challenges and may encounter potential rejection by Congress.