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Bitcoin can also be used for corporate "registered capital": an Argentine company completed registration with BTC and USDC

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The company was founded with nearly $500 in capital, including BTC and USDC, but the cryptocurrency used for registration had to be transferred to a wallet on a registered domestic exchange.

Original title: "Bitcoin can be used as the "registered capital" of a company! Argentine companies complete registration with BTC and USDC"

Original author: Joe, BlockTempo

Due to factors such as large government deficits, trade and foreign exchange controls, the South American country Argentina has long been plagued by inflation, forcing residents to turn to the US dollar to protect their wealth, and the US dollar stablecoin has become a popular local trading medium, making Argentina's cryptocurrency adoption rate generally higher than other countries in the Western Hemisphere.

The first company with cryptocurrency as capital is registered in Argentina

Against this background, according to Bitcoin.com, last week the Argentine Ministry of Justice reported that a company had successfully used cryptocurrency for company registration, becoming the country's first case. The Ministry of Justice said:

"Thanks to the modernization promoted by the Ministry of Justice, we have made history.

We are the first country in Latin America to achieve this milestone."

It is understood that the company was established with a capital of nearly $500, including 0.00457621 BTC and $194.99 USDC. However, unlike the registration of ordinary companies, the cryptocurrencies used for this procedure must be transferred to wallets hosted by registered domestic exchanges such as Lemon and Ripio and must be kept there.

The report pointed out that in order to complete the registration, the company's capital must be available for seizure according to law. Adam Dubove, a local Bitcoin advocate, stressed that due to this regulation:

"You can only use the IOUs of the exchange to consolidate the capital of the company, not Bitcoin."

In June, Argentine President Javier Milei confirmed his plan to create a multi-currency environment in Argentina and confirmed the possibility of using Bitcoin. "You can also use other units, such as WTI, BTU, and the unit that best suits your business," he assessed, hinting at the possibility of adding new currencies to some official procedures related to the country.

Current situation of Argentina's acceptance of cryptocurrencies

Argentine President Milei, who was an economist, said before he won the presidential election last year that he would close the central bank and use Bitcoin to save the Argentine economy. At that time, the specific ideas and actions he proposed included:

· Milei has promoted the benefits of Bitcoin and cryptocurrencies in many talk shows. He said that "Bitcoin can eliminate the central bank."

· At the end of November last year, Mirei defeated Economy Minister Sergio Massa to win the election. After being elected, he once again showed his determination to close the Central Bank of Argentina (BCRA) on the X platform, saying that this was "non-negotiable".

· At the end of December last year, Argentina's new Minister of Foreign Affairs and International Commerce Diana Modino announced on the X platform that Argentina has approved and confirmed that Bitcoin and other cryptocurrencies can be used as transaction currencies in commercial contracts.

· In May of this year, the Argentine National Securities Commission held a formal meeting with the Digital Assets Bureau of El Salvador to discuss how the country can adopt Bitcoin as a reserve currency.

Forbes: Mirei's economic proposition lies in dollarization

However, whether Mirei is really promoting a policy of embracing Bitcoin seems to be negative at present. According to a June report by Forbes, Mireille’s economic proposal is not to follow El Salvador’s example and make Bitcoin a legal tender, as widely reported by the media, but to first achieve the dollarization of the economy.

Forbes went on to point out that Bitcoin was not even mentioned in the meeting with El Salvador in May this year. Instead, the focus of the two sides' discussions was on the self-custody rights and regulatory framework of crypto assets, in order to create a good regulatory environment for cryptocurrencies, and Bitcoin was not really the standard:

"The Argentine Central Bank continues to deal with issues such as inflation, currency depreciation and foreign exchange controls, which makes the idea of using Bitcoin as a primary currency even more unfeasible.

Banks and payment service providers are still prohibited from providing any type of crypto services or products, including Bitcoin."

However, taking a step back, it is also beneficial to provide Argentina with a good regulatory environment. After all, in the context of soaring inflation and the continuous depreciation of legal currency, USDT and BTC have become popular choices for local people. Mirei did not deny the possibility of using Bitcoin in the future. Let us continue to observe.