As El Salvador passed a law to make Bitcoin a legal tender, many parliamentarians in Latin American countries expressed interest in Bitcoin. These countries include Paraguay, Argentina, Panama, Brazil, and Mexico. According to reports, Tonga Islands and Tanzania have also expressed interest in Bitcoin. Recently, Argentine Congressman José Luis Ramón submitted a new bill that, if passed, would allow workers to receive wages in the form of Bitcoin and other cryptocurrencies.
Ramón claims that the plan can preserve the purchasing power of employees while increasing their financial autonomy. According to the proposed bill, workers can choose to pay all or part of their wages in cryptocurrency. In addition, those Argentines who work overseas do not have to convert their income into pesos after returning home. However, for Argentina, these are only at the proposal stage. Due to economic turmoil, Argentina and other Latin American countries such as Venezuela, Brazil and Peru rank high in cryptocurrency adoption. Earlier, the Salvadoran government also discussed the issue of using Bitcoin to pay employees' salaries. Argentina's economic downturn, high inflation, currency deflation, and shortage of U.S. dollar investment exist, which is a shot in the arm for the development of cryptocurrency. The crypto boom continues to surge in Argentina. As of May 2021, public information shows that Argentina, a country with 45 million, has an estimated 2 million crypto trading accounts. In addition, in the past few months, more than 1 million Argentines have been buying cryptocurrencies. According to local media Ámbito, most buy Bitcoin and stable currencies such as USDT, USDC, and DAI. The media also emphasized that stablecoins have begun to build momentum in 2019 due to Argentina's U.S. dollar purchase limit. Users believe that this token is a more effective way to convert Argentine pesos into U.S. dollars. In addition, the adoption rate of Ethereum in the country is also increasing. It is worth mentioning that, in the context of economic uncertainty and the government's large amount of electricity subsidies, more and more Argentine residents are turning to Bitcoin mining. At the beginning of this year, Argentina's Bitcoin searches on Google surged. With the active cryptocurrency activities, the Argentine central bank and securities regulators recently issued a joint statement warning the public to invest in cryptocurrencies. The statement stated that investing in cryptocurrencies "may cause significant financial losses to holders, including the possibility of losing all invested capital." However, the statement also pointed out that despite the risks, cryptocurrency transactions have not yet reached the level of widespread use and acceptance in Argentina. Argentina's appropriate supervision is also on the agenda. As early as April, the Central Bank of Argentina (BCRA) required operating banks within its jurisdiction to obtain and provide detailed information on all customers that use cryptocurrency transactions. In a form leaked on Twitter by the local Bitcoin community, the Argentine central bank commissioned the domestic bank to provide the unique tax identification number (CUIT), address, account number, account type, and authorized use of the account for each customer Information about the person's name. The attached information further explains that the data request is necessary and belongs to the business scope of BCRA because it has a "payment system monitoring function." The Argentine central bank later confirmed the authenticity of this table to a local news platform, adding that the purpose of this work was to determine whether there is a need for more excellent supervision of crypto assets in the country. In May of this year, Argentina's Federal Office of Public Revenue (AFIP) issued a "Form 8126" and forwarded it to every digital asset exchange operating in the country to comply with the new regulations. The company must fill out the form by the 15th of the following month after the reporting month. The exchange shall report "a list of accounts used to identify each customer; registrations, cancellations, and modifications that have occurred; total income, expenditures and final monthly balance of the wallet." In addition, the payment gateway MercadoPago will be reviewed by AFIP.
0 Comments
Leave a Reply. |
Sophie
Share various useful investment information for reference only. Archives
January 2022
Categories |