El Salvador is proactively discussing with Argentina to enhance their respective crypto-based industries and support a new anti-inflationary era.
Yesterday, the political representatives of the two countries signed an agreement for mutual collaboration and training, discussing possible cryptographic integrations.
In the meantime, El Salvador is looking for other similar cross-border partners, and it seems that negotiations are underway with as many as 25 Nations.
Let’s see all the details below.
El Salvador and Argentina: a partnership focused on the crypto world
El Salvador and Argentina have just announced a significant collaboration to promote the crypto sector between the two countries.
On December 11, the Salvadoran President of the NCDA Juan Carlos Reyse and the Argentine President of the CNV Roberto Silva signed an agreement of mutual collaboration.
By doing so, the parties commit to helping each other to strengthen possible ties focused on the use of digital assets.
BREAKING: EL SALVADOR SIGNS MUTUAL AGREEMENT WITH ARGENTINA TO BOOST DIGITAL ASSET INDUSTRIES IN BOTH COUNTRIES
— BSCN Headlines (@BSCNheadlines) December 12, 2024
During the meeting, held at the San Martín Palace in Buenos Aires, the two representatives discussed El Salvador’s pro-Bitcoin approach.
We remember that the Latin American country made Bitcoin a legal currency in 2021 under the leadership of President Nayib Bukele and since then the economic conditions have improved significantly. El Salvador has attracted global attention for supporting the crypto industry and is now discussing these implications with new potential partners.
Argentina, which is seeking solutions to stimulate its economy and combat inflation, sees in this collaboration a new opportunity for growth.
Mutual advantages of collaboration
The collaboration between El Salvador and Argentina offers numerous mutual advantages.
For El Salvador, this partnership represents an opportunity to consolidate its position and expand its influence in the crypto sector in Latin America.
Sharing one’s knowledge and strategies outside of one’s bubble can strengthen crypto adoption by creating a more robust and interconnected ecosystem.
For Argentina, the potential benefits are equally significant as the country could promote technological innovation and push for greater financial inclusion.
The president Javier Milei could adopt crypto as a solution to combat inflation and improve economic stability.
In a recent interview Reyes stated that Argentina’s innovative blockchain sector and El Salvador’s technological experience “will create a highly productive partnership.”
The same then continued by saying that the most immediate advantage in the short term represents the sharing of information between the two countries.
We remember that several Argentine companies are registered in El Salvador: this factor could create the conditions to improve the flow of money between the parties.
Could Argentina Follow Bukele’s Bitcoin Model?
After the news of the collaboration with El Salvador, speculations have increased that Argentina might follow Bukele’s crypto model.
As mentioned, the Salvadoran President has initiated a pro-Bitcoin agenda starting from 2021, with the orange coin becoming legal tender.
In just 3 years, the Central American country has invested the significant amount of 270 million in Bitcoin, aiming to improve its economy.
Currently, with Bitcoin surpassing 100,000 dollars, Bukele’s bet results in a gain of 122% with an unrealized profit of over 333 million dollars.
El Salvador president Nayib Bukele is posting PnL screenshots on Instagram.
What a chad! pic.twitter.com/cZZ2ztr1SP
— Lark Davis (@TheCryptoLark) November 21, 2024
Now the discussion begins about a possible replication of this model by Argentina, considering also the crypto support of President Javier Milei.
The same had already shown a strong interest in the adoption of Bitcoin and other cryptocurrencies as tools to improve the financial conditions of the country.
We remind you that the Argentine peso (ARS), excluding the last year of growth driven by Milei, represents a strongly devalued currency.
In the last decade, the currency of Argentina has lost almost 99% of its value against stronger currencies like the euro or the dollar.
El Salvador looks to the refinement of crypto regulations and seeks new collaborations
El Salvador not only looks to Argentina as a partner for the development of its own crypto landscape, but also seeks other countries ready to take the big step.
The president of the NCDA Reyes reported on how he is in negotiations with over 25 nations and how many other future agreements are expected. He acknowledged, however, how spreading orange-pillow is extremely complex and difficult.
Here is what was reported verbatim by the political representative:
“As a regulator, we recognize that our approach might be unconventional, as we are not what they are used to, a central bank or another legacy entity, which has led to some delays in understanding how we can collaborate with other countries”.
Reyes also referred to the refinement of their regulatory framework in order to accommodate and amplify possible connections with the outside.
He also sent a clear message to the regulatory authorities of other jurisdictions indicating the importance of transparent regulation and open to collaboration.
This is what was summarized by the politician:
“The longer one waits, the more difficult it becomes to implement effective regulations and the greater the risk that fraudsters and money launderers will take control of the sector”.
To collaborate effectively with other nations, El Salvador has created a team of over 20 members composed of competent and expert individuals on Bitcoin and crypto.
