El Salvador, the first country to make Bitcoin legal tender, is joining forces with Argentina to develop new rules for digital assets.
This partnership is part of El Salvador’s plan to work with more than 25 countries to build better cryptocurrency regulations across Latin America.
On 11 December, the President of El Salvador’s National Commission of Digital Assets (NCDA), Juan Carlos Reyes, and the President of Argentina’s National Securities Commission (CNV), Roberto Silva, signed an important agreement. The focus is on improving regulation and encouraging innovation in the digital asset sector.
Reyes highlighted the potential of this collaboration, saying, “Argentina’s innovative blockchain industry combined with El Salvador’s technological expertise will result in a highly productive partnership”.
Argentina already has companies operating in El Salvador, showing the practical benefits of this alliance.
Reyes also stressed that El Salvador’s three years of experience in creating crypto regulations give it a strong foundation to help other countries. Talks are ongoing with over 25 nations to establish similar agreements.
“Our experience has shown that cross-border knowledge sharing is essential for creating a safe and effective regulatory environment”, Reyes explained, urging other regulators to adopt this approach.
To support these partnerships, El Salvador has formed a 20-member team of experts in Bitcoin and other cryptocurrencies.
This team aims to help countries create strong rules to prevent scams and financial crimes like money laundering.
Argentina’s bold steps toward crypto adoption
Argentina is becoming a key player in cryptocurrency innovation, especially under President Javier Milei’s leadership. Milei is introducing major financial reforms in 2025, including free currency use and crypto-friendly policies.
This means Argentines will be able to use any currency, including Bitcoin, for everyday transactions, offering more financial freedom.
Another major reform is a planned 90% cut in national taxes, which will allow provinces to create their own tax rules. This move aims to decentralise economic decisions, reduce financial burdens, and encourage local growth.
Cryptocurrency is already part of Argentina’s financial system. In 2023, the government legalised Bitcoin contracts, opening the door to wider use of digital assets. However, current tax laws still favour traditional currencies like the US dollar and euro over Bitcoin.
These disparities discourage Bitcoin’s use as a currency. Milei’s administration is working to address these issues, aiming to make Argentina a leader in crypto adoption.
Supporters of these reforms believe that promoting competition between cryptocurrencies and traditional currencies will reduce financial pressures and encourage innovation.
Latin America’s role in global crypto trends
El Salvador and Argentina’s partnership reflects a larger trend in South America, where several countries are advancing their cryptocurrency initiatives.
For example, Brazil is working on a central bank digital currency (CBDC) with the help of tech giants like Microsoft and Chainlink.
Meanwhile, Venezuela’s cryptocurrency market grew 110% year-over-year in Q2 2024, reaching a value of $11.7 billion.
Beyond South America, countries worldwide are also making strides in crypto regulation. Ukraine is preparing to legalise cryptocurrencies by 2025. Its proposed laws will focus on clear rules for digital assets, ensuring financial stability and preventing misuse.
The head of Ukraine’s tax committee, Daniil Getmantsev, said, “Tax exemptions for crypto transactions were ruled out to prevent potential misuse”.
Ukraine sees cryptocurrency as a way to strengthen its financial system, especially during its ongoing conflict with Russia. In 2023, digital assets raised nearly $70 million to support Ukraine’s defence and humanitarian efforts.
Russia, on the other hand, has banned crypto mining in occupied Ukrainian regions but eased some domestic crypto taxes. Other nations, like Morocco, are also reconsidering their stance on cryptocurrencies.
By working together, El Salvador and Argentina are setting an example for other nations. Both countries recognise the need for cooperation, clear rules, and innovation to manage the growing influence of cryptocurrencies.
