Crypto crossroads in Argentina: Legislative elections could define the future of the industry

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Argentina is on the verge of a turning point that could shape its future crypto legal framework. The future of the crypto business, which is now dealing with numerous issues in the nation, will be shaped by the legislative elections that are scheduled for this year.

Bitcoin is being considered by La Libertad Avanza (Freedom Advances), the party led by President Javier Milla, as part of a multi-currency competitiveness strategy. Ramiro Mara, a regional deputy, thinks a mechanism may be put in place that would enable residents to use bitcoin for regular transactions.

Proposals about bitcoin have also been made by other parties. Martin Yeza, a member of the PRO party, proposed a bill last year to change current central bank rules so that the central bank may include bitcoin in its reserves.

Only easily liquid assets, such as gold, dollars, and other fiat currencies, can be held by Argentina's central bank.

Analysts think that cryptocurrency could be a significant topic in the next elections, even though other parties have not taken a firm stand on the matter.

According to international expert Pablo Navarro, the typical politician is still not concerned about the crypto issue. "I believe that modernizing them is essential. He emphasized that they should educate themselves (in huge numbers) and incorporate tools like Web3, blockchain, and cryptocurrencies into the discussion.

Given Argentina's high level of cryptocurrency usage, he stated, "I have no doubt that voters take this into account and it will have an impact at election time."

Banks and payment providers are still prohibited from participating in the cryptocurrency system by Argentina's central bank, which also prohibits them from offering cryptocurrency services. Even while the bank has stated that it will be lifted once crypto-regulations are implemented, this prohibition was in effect before to Milley taking office and has not yet been lifted, so it might also be worth taking into consideration for the upcoming Congress.