Fun

Bitcoin Is Going Through the Roof in Argentina While the Government Imposes New Taxes

News Feed - 2020-12-11 03:12:32

Bitcoin Is Going Through the Roof in Argentina While the Government Imposes New Taxes


Argentina’s Senate approved an extraordinary one-time wealth tax to fight the coronavirus pandemic by seeking to boost government revenue and targeting millionaires with assets of more than 200 million pesos ($2.5 million). At the same time, the country still faces a 35% inflation. Argentinean Senate Approves New Taxes, While Bitcoin Keeps Skyrocketing Against the Argentine Peso


According to El Pais, the measure, citing opposition parties’ statements, could “slow down the investments” in a country whose fiat currency, the Argentinean Peso (ARS) is highly devalued against bitcoin (BTC). The law aims to tax between 1% and 3% of the wealth of taxpayers.


As of press time, BTC/ARS is hovering around the 1,500,850 level, off from the 1,594,196 area (all-time high) reached early December 2020. It is worth noting that this price is not based on the parallel dollar (known as “blue dollar”) that circulates in Argentina, but the official dollar price.


Back in July 2019, BTC was trading at 491,000 ARS, yielding over 185% in a single year so far. If the quotation is made with the blue dollar, bitcoin is currently treading waters at 2,712,438 ARS, according to local exchange Ripio.


The parallel dollar is the only free exchange rate governed by supply and demand forces in the country. Although its purchase and sale in the country are illegal, the surging of the quotation is related to the depreciation of the ARS: a currency that faces economic troubles, inflationary turmoil, oversized emissions, and hopeless forecasts from experts, giving enough room to BTC to surge across the board.


On December 5, 2020, a Bloomberg report noted that the gap between the official and market-based exchange rates narrowed since October due to the government’s adoption of more “orthodox measures to boost exports.” Is This the End of the Argentinean Peso in the Latin American Nation?


This is given in the context of the recent stance from the Director of the Central Bank of Argentina (BCRA) on fiat, Carlos Hourbeigt, who stated in a recent presentation before the Argentine Chamber of Fintech that “the common enemy is the cash.”


He has been promoting “Transferencias 3.0,” an upcoming national payments network that aims to replace the Argentinean peso in cash, and which will be monitored by the Central Bank and three companies from the financial sector, including Prisma, Red Link, Interbanking, and Coelsa.



Despite the interest of the BCRA in replacing cash in the country, the local cryptocurrency community has taken this stance with some skepticism. Camilo Jorajuría, an Argentinean legal consultant and expert in bitcoin and blockchain affairs, made the following comment through his Twitter account on the digital wallet promoted through Transferencias 3.0, raising concerns on privacy: The desire of regulators, local and global, is the Chinese model. Maximum population control with zero privacy. Only bitcoin fixes this. Crypto Adoption Keeps Surging in Argentina


A study published by Chainalysis on September 3, 2020, analyzed the current status of cryptocurrencies in Latin America, highlighting Argentina as one example of how its depreciation in the national fiat has been boosting crypto adoption significantly so far this year.


The report also adds that restrictions on the amount of U.S. dollars that Argentineans can buy per month fuel the need for buying cryptocurrencies across the nation, as such barriers limit their options to secure savings.


Do you think the recent tax measures will only help to further boost crypto adoption in Argentina? Let us know in the comments section below. Newly Appointed Ukrainian Politician Declares Owning Over $24 Million in Monero NEWS | 45 mins ago Founder of World"s Largest Hedge Fund Ray Dalio Sees Bitcoin as Gold Alternative in Portfolios NEWS | 5 hours ago Tags in this story Argentina, argentina bitcoin, argentina crypto, argentina cryptocurrency, Argentina economy, Central Bank of Argentina, chainalysis crypto adoption, Crypto Adoption, Tax


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Mining City: A Blueprint for Success?
Mining City: A Blueprint for Success? “Together we grow!” This is the slogan of Mining City, a company with a solid foundation in the cryptocurrency
Old Fashion Research Launches $100 Million Latam and Emerging Markets Crypto Metaverse Fund
Old Fashion Research Launches $100 Million Latam and Emerging Markets Crypto Metaverse Fund A VC company founded by former Binance employees, Old Fashion Research, has announced th
Despite Negative Mining Malware Press, Privacy-Focused Crypto Monero Jumps 36% in 2 Weeks
Despite Negative Mining Malware Press, Privacy-Focused Crypto Monero Jumps 36% in 2 Weeks The privacy-centric crypto asset monero has seen significant gains during the last two wee
What are crypto exit scams, and how to protect against them?
Jelena Gjorgjev14 hours agoWhat are crypto exit scams, and how to protect against them?Don’t fall for crypto exit scams! Learn what they are, the red flags to watch for, and how to protect your investments.817 Total vi
BTC price hits $65K as rumor Middle East tensions over boosts Bitcoin
William Suberg23 minutes agoBTC price hits $65K as rumor Middle East tensions over boosts BitcoinBitcoin liquidates shorts as seesaw BTC price moves accompany changing geopolitical signals.300 Total views1 Total sharesLi
Charles Hoskinson Discusses Cardano’s 2022 Plans, Founder Says Project ‘Needs Institutions to Have Stake in the Success of ADA’
Charles Hoskinson Discusses Cardano’s 2022 Plans, Founder Says Project ‘Needs Institutions to Have Stake in the Success of ADA’ The digital currency cardano has jumped over 8
Vitalik Buterin endorses Celo for beating Tron in stablecoin addresses
Helen Partz9 hours agoVitalik Buterin endorses Celo for beating Tron in stablecoin addressesVitalik Buterin noted that Celo’s second L2 testnet, Alfajores, will be upgraded to Ethereum L2 on Sept. 26.5019 Total views25
Cardano Next In Line After XRP? ADA Price Targets $4.88 In Epic Breakout
Este artículo también está disponible en español. Cardano could be the next to surge after XRP, as the ADA price shows signs of an imminent market recovery. A crypto anal
Sportsbet.io and Watford FC Wear Heart on Their Sleeves with the Bitcoin Logo
TwitterFacebookLinkedInReddit When Gerard Deulofue ran out onto the pitch on Sunday to meet London rivals Arsenal in
Ethereum Tests Critical Range: Breakout Or Breakdown?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Brayden Lindrea4 hours agoShibarium wallets surpass 100K after SHIB devs relaunch bridgeShytoshi Kusama, the co-founder of the SHIB token, said the bridge was fixed with the help of Polygon Labs co-founder Sandeep Nailwa
Robert Kennedy Jr: Government Could Ban, Seize Bitcoin — CBDCs Could Lead to Financial Slavery, Political Tyranny
Robert Kennedy Jr: Government Could Ban, Seize Bitcoin — CBDCs Could Lead to Financial Slavery, Political Tyranny Presidential hopeful Robert F. Kennedy Jr. has issued a warning