Crypto: Salvador Signs Strategic Agreement with Argentina

Salvador recently announced a strategic partnership with Argentina to strengthen the regulation of digital assets. This collaboration is part of a broader initiative by Salvador aimed at establishing similar agreements with over 25 countries, thereby sharing its expertise to build effective regulations in the crypto field in Latin America.

An alliance for effective crypto regulation

On December 11, 2024, Juan Carlos Reyes, president of the National Digital Assets Commission (NCDA) of Salvador, and Roberto Silva, president of the National Securities Commission (CNV) of Argentina, signed a mutual agreement. This agreement focuses on regulation and innovation in the crypto sector. Reyes emphasized the potential of this collaboration, stating that Argentina’s innovative blockchain industry, combined with Salvador’s technological expertise, will result in a highly productive partnership.

Argentina already has companies registered in Salvador, demonstrating the practical benefits of this alliance. Reyes also highlighted Salvador’s three years of experience in the regulation of digital assets, which is a significant advantage for guiding other countries in developing effective regulations.

Salvador is not stopping at Argentina. Discussions are underway with over 25 countries for similar agreements. Reyes insisted on the importance of cross-border collaboration to promote crypto adoption and global regulation. He stated: “Our experience has shown that cross-border knowledge sharing is essential to create a safe and effective regulatory environment, and we encourage other regulators to prioritize this approach.”

Salvador’s expertise despite criticisms

Although Salvador has faced criticism for its bold Bitcoin initiatives, such as adopting crypto as legal tender, the country has acquired valuable experience. This knowledge is now being used to support other nations in building well-regulated legislative frameworks. As Ryan Lee, chief analyst at Bitget, thinks:

The recently announced partnership between El Salvador and Argentina represents a significant step in expanding Bitcoin adoption and advancing cryptocurrency ecosystems across Latin America. This collaboration has the potential to enhance Bitcoin’s legitimacy and transactional infrastructure, particularly in regions like Argentina, where inflation has spurred interest in alternative value systems. It may also inspire neighboring countries to explore crypto-friendly policies, contributing to a more cohesive regulatory environment.

In conclusion, the partnership between Salvador and Argentina marks a significant step in the regulation of digital assets in Latin America. It paves the way for broader and more effective crypto adoption globally.