Argentina Plans to Tokenize Financial Assets

Argentina is preparing a major reform of its financial market. A proposed deregulation bill would allow cryptocurrencies and blockchain technology to be used in investment funds, securities trading and contractual agreements.

The proposal, drafted by Deregulation Minister Federico Sturzenegger, would permit investment funds to invest in digital assets, provided that such investments comply with their policies. Preliminary estimates suggest that the reform could generate billions in additional demand. Detailed regulations would need to be approved by Argentina’s securities regulator, the CNV.

The bill would also enable the full tokenization of all transferable securities. Assets could be issued, stored, transferred and sold using decentralized technologies. The goal is to speed up transactions while reducing their cost.

Bitcoin and other digital assets could also be used as collateral for loans. This would make the traditional financial system more accessible to people whose wealth is primarily held in the cryptocurrency market.

The proposed legislation would grant full legal recognition to smart contracts. Agreements such as rental contracts and mortgages could be concluded on the blockchain. Redemptions, payments and the seizure of collateral could also be carried out automatically, without requiring a court ruling.

The document remains an early draft and may be amended before it is submitted to Congress. Nevertheless, its key provisions are consistent with the reforms previously pursued by President Milei.