02.08.2021

Argentina, a law allowing citizens to receive a salary in cryptocurrency

Member of the National Congress of Argentina Jose Luis Ramon introduced a bill according to which all workers and exporters of services will be able to receive partial or full payment in cryptocurrencies.

“I presented a bill that allows employees to receive their salaries in cryptocurrencies.

Thanks to this, they will be able to increase their autonomy and preserve the purchasing power of the money they receive ”.

  • The Argentine congressman has proposed a law allowing Argentines to receive their salaries in cryptocurrency.
  • This will be a way to protect the Argentine peso from hyperinflation.
  • Argentines are already actively using cryptocurrencies.

Interesting is the last proposal of Jose Luis Ramon. The fact is that the citizens of Argentina are faced with a huge inflation of the Argentine peso, which is why they cannot use the national currency for its intended purpose – to preserve capital.

This year, the rise in prices for goods and services has already reached 50% year-on-year in local pesos:

Moreover, inflation is only increasing, which prevents local residents from storing their capital in Argentine pesos. And the use of bitcoin or another cryptocurrency with predictable and low emission rates may be a way out. According to Acuant, only 48.7% of Argentines have an open bank account, while 78% of Argentines have Internet access.

“This initiative is essential to create greater autonomy and wage management without neglecting worker rights,” added Ramon.

In 2019, the Argentine government forced labor exporters (that is, people traveling abroad to work) to convert their income from dollars into Argentine pesos through a payment gateway that the country’s central bank created. Because of this, people lose money in two cases at once:

  • First, the conversion rate is much worse than on the open market;
  • Second, the Argentine peso is prone to high inflation.

Ramon’s proposed bill allows workers to maintain the purchasing power of their money as they enter the country. All citizens will have the freedom to choose: receive a salary in cryptocurrency or in another currency. At the same time, the employer is obliged to pay the costs associated with the transfer of cryptocurrency to the employee.

It is worth noting that many Argentines have already switched to using cryptocurrencies in labor relations. The point is that they are allowed to buy US dollars for no more than $ 200 per month. This imposes certain restrictions, since the Argentine peso is subject to high inflation and devaluation (in 18 months it fell against the dollar from $ 0.02 to $ 0.006), and the dollar cannot be bought in large volumes. Therefore, many people began to directly receive their salaries in cryptocurrency.

Bitwage (a platform for converting fiat money to cryptocurrency) over the past year has recorded a 300% increase in the monthly volume of transactions carried out by residents of Argentina. And the number of registrations on the platform from Argentines has grown by 500%. Such data is provided by CoinDesk.

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