The first rental contract in Bitcoins has been signed in Rosario, Argentina.
Image Edited on Canva
The owner of an apartment and the tenant have sealed a Bitcoin rent agreement in the third most populated city in Argentina known as Rosario. The tenant has agreed to pay monthly rent in Bitcoin ($BTC). The monthly payment under the sealed contract will equal $100 in Bitcoin. The agreement between parties occurred after Chancellor Diana Mondino stated on social media that contracts can be 'arranged in Bitcoin' and in US dollars.
This development was covered in a local newspaper, Paginal 12 from Jan. 11, remarking that the contract is the first of its kind in the entire country of Argentina. This agreement has been made possible by the recent amendment of the Rental Law through the extensive DNU (Decree of Necessity and Urgency) by President Javier Milei. The law comprised over 300 articles— which has been in effect in Argentina since December 30.
In Rosario, the first rental contract in Bitcoins was signed. (Image source: Andrés Macera)
Earlier in December 2023, the minister of foreign affairs, international trade, and worship, Diana Mondino, mentioned that a decree aimed at economic reform and deregulation would allow the use of Bitcoin and other cryptocurrencies in the country under certain conditions in Argentina.
An Argentine finance company Fiwind, which specializes in the buying and selling of cryptocurrencies, is billed to facilitate the transaction. A spokesperson from the company explained: "At least in Argentina, a contract in this currency had never been signed before; it's a novelty for us." - source. He furthered that there is "no record" of any other company in the same industry having done so. It is also reported that both counterparties to the contract are experienced crypto users and are active users of Fiwind.
Screenshot of the contract validating the payment of rent in Bitcoin. (Image source: Fiwind)
The Argentine government has been credited with easing the path to legalizing crypto holdings in the country. In an attempt to make the process gain speedy adoption, the framework of a regularization scheme allows taxpayers to pay a flat tax on assets of 5% if they declare holdings by the end of March 2024, 10% from April, and 15% from July until the end of September.
This crypto-realestate development in the South American country will pave the way for greater crypto adoption. The validation of this Bitcoin-bound rental deal in a season when Bitcoin ETF is approved by the U.S. Security Exchange Commission signals more varied dimensions of use cases created for the largest crypto - Bitcoin. This also gives the impression that given the convenient legislation, cryptocurrencies would easily permeate through every possible fabric of human monetary interactions.
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