Bitcoin surged above the psychologically important $70,000 level on Monday following reports that Argentine authorities are working with bitcoin-friendly El Salvadoran authorities to boost adoption of the benchmark cryptocurrency.
Argentina’s securities regulator, the National Securities Commission (CNV), has begun discussions with El Salvador’s National Digital Asset Commission (CNAD) to address the adoption and regulation of cryptocurrencies in both countries.
Argentina taps El Salvador for crypto adoption strategy
CNV President Roberto E. Silva, along with Vice President Patricia Boedo, met with CNAD President Juan Carlos Reyes to delve into El Salvador's pioneering steps as the first country to adopt Bitcoin as legal tender alongside Bitcoin. According to the blog post, Argentina sought to learn from the small Central American country's experience regulating and operating cryptocurrencies.
“El Salvador has established itself as a global leader not only in the use of Bitcoin but also in the broader field of digital assets,” said Roberto E. Silva, chairman of Argentina's National Securities Commission. “We aim to strengthen our ties with El Salvador and are exploring possible cooperation agreements.”
El Salvador made headlines when the country, led by President Najib Bukele, made a bold move into the world of Bitcoin in September 2021, leading to a significant growth in the tourism sector and a subsequent buying spree of BTC. Bitcoin prices have seen significant fluctuations since 2021, recently hitting an all-time high of around $74,000.
El Salvador's frequent BTC purchases and the establishment of a tax-free crypto haven powered by geothermal energy from its volcanoes underscore the country's strategic approach to leveraging cryptocurrencies for economic development.
Learning from the El Salvador Experience
Despite opposition and warnings from international organizations such as the International Monetary Fund (IMF), El Salvador's commitment to its Bitcoin strategy remains firm, with the country showing no signs of retreating from the original cryptocurrency.
If the country continues its Bitcoin investment program and improves its cryptocurrency infrastructure, it will set a great example for other countries, such as Argentina, to follow, potentially revolutionizing the global financial landscape.
During a visit to El Salvador in March to attend a conference on market development, Boedo highlighted the important role played by Salvadoran expertise in the cryptocurrency space.
“Argentina is a pioneer in technology and the National Securities Commission understands that and wants to work efficiently with the industry and create appropriate regulations,” Reyes, the Salvadoran official, argued.
Argentina is currently the 22nd largest country by GDP with a population of over 44 million. The meeting took place on May 23, but the news didn't spread until today.
Most of the top 20 cryptocurrencies are rising, with Bitcoin up 2% to surpass $70,000 and Ether closing in on the $4,000 threshold. Bitcoin hit a local high of $70,601 early today. At press time, BTC prices have fallen to $70,100.44, while ETH is trading at $3,934.75, according to data aggregator CoinGecko.
