On March 3, the Argentine government reached an approximately $45 billion debt restructuring agreement with the International Monetary Fund (IMF).
There was also a provision for cryptocurrencies in the Technical Memorandum of Understanding (TMU). Under the heading “strengthen financial resilience”, the letter states “To further safeguard financial stability, we are taking important steps to (i) discourage the use of crypto-currencies with a view to preventing money laundering, informality, and disintermediation.”
On March 11, the lower chamber of the Argentine National Congress and the Chamber of Deputies ratified the deal. The Senate reviewed it for final approval on March 17th.
The controversial agreement with the IMF is to restructure a $45 billion loan secured by the former administration of Mauricio Macri in 2018. Argentina was supposed to repay $19 billion in 2022 and $20 billion in 2023.
Argentina has long been a regional cryptocurrency leader. Currently, it is estimated that around 1.3 million people, or 2.94% of Argentina’s entire population, hold cryptocurrencies. With rising inflation rates, an economic meltdown, and a scarcity of US dollars to invest in, cryptocurrencies have shown to be a viable option for the country’s citizens.
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