Bitcoin broke above the $70,000 psychologically important mark on Monday following reports that Argentina authorities are collaborating with officials from Bitcoin-friendly El Salvador to boost their adoption of the bellwether cryptocurrency.

The National Securities Commission (CNV), the Argentinian securities regulator, has opened discussions with El Salvador’s National Commission of Digital Assets (CNAD) to tackle crypto adoption and regulation in the two nations.

Argentina Taps El Salvador For Crypto Adoption Strategy

Roberto E. Silva, the President of CNV, along with Vice-President Patricia Boedo, had talks with Juan Carlos Reyes, President of CNAD, to delve into El Salvador’s pioneering journey as the first country to adopt Bitcoin as legal tender alongside Bitcoin. Argentina sought to learn from the tiny Central American nation’s regulatory and operational experiences with crypto, according to a blog post.

“El Salvador has established itself as a global leader not only in the use of Bitcoin but also in the broader realm of digital assets,” Roberto E. Silva, president of Argentina’s National Securities Commission, opined. “We aim to strengthen our ties with El Salvador and are exploring potential collaboration agreements.”

El Salvador, under President Nayib Bukele, grabbed headlines in September 2021 when it made a bold foray into the world of Bitcoin, leading to significant growth in its tourism sector and subsequently going on BTC buying sprees. Bitcoin’s price has seen marked fluctuations since 2021, recently setting a record high of nearly $74K. 

El Salvador’s frequent BTC purchases and the establishment of a tax-free crypto haven powered by geothermal energy from its volcano underscores the country’s strategic approach to harnessing cryptocurrency for economic development. 

Learning From El Salvador’s Experience

Despite objections and warnings from international entities like the International Monetary Fund (IMF), El Salvador’s commitment to its Bitcoin strategy remains firm, with the country displaying no signs of divesting from the OG cryptocurrency.

As the country continues its Bitcoin investment program and improves its cryptocurrency infrastructure, it sets a great precedent for others like Argentina to follow suit, potentially revolutionizing the global financial landscape.

CNV vice president Boedo, who visited El Salvador in March to engage in meetings on market development, stressed the important role of El Salvador’s expertise in the cryptosphere.

“Argentina is a pioneer in technology and the National Securities Commission understands and wants to work with the industry efficiently and create appropriate regulation,” El Salvador’s official Reyes postulated.

Argentina is currently the 22nd biggest country by GDP, with a population of more than 44 million. Although the meeting took place on May 23, the news didn’t circulate until today.

Most of the top 20 cryptocurrencies are in the green as Bitcoin jumps 2% to climb past $70,000, while Ether flirts with the $4,000 threshold. Bitcoin hit a local high of $70,601 earlier today. The BTC price has slipped to $70,100.44 at press time, while that of ETH stands at $3,934.75, according to data aggregator CoinGecko.

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Filed under: Bitcoin - @ May 27, 2024 10:42 pm