Argentina Will Discuss Bill to Boost Cryptocurrencies

On Friday, a bill to be presented in Argentina would allow the State, banks, and companies to have more options in the use of cryptocurrencies.

November 10, 2020 | AtoZ Markets – On Tuesday, November 10, 2020, the digital media iProUP released the news regarding the upcoming presentation of a bill with which it will seek to institutionalize cryptocurrencies in Argentina.

So far, the South American country does not have a regulatory framework regarding the matter, which contrasts with other nations such as ChinaBahamasAustralia, and South Korea, which are making firm steps in the development of a central bank digital currency. (CBDC).

Read also: What is Central Bank Digital Currency (CBDC)?

The bill to promote cryptocurrencies in Argentina

According to the postulates of the document, the bill would be aimed at creating a “comprehensive regulatory framework applicable to transactions and civil and commercial operations of crypto assets” in Argentina and used “as a means of payment, savings or investment. ”, In transactions“ carried out between human, private or public legal persons ”.

Highlighting the importance of institutionalizing cryptocurrencies in Argentina, the deputy of Together for Change, Ignacio Torres said:

“Our goal is to recognize cryptocurrencies as a financial asset. Obviously, full regulation is not contemplated because they are powers of the AFIP. But we want to obtain the greatest consensus on the premises to have legislation similar to that of other countries ”.

Some benefits of the bill

Deputy Torres also pointed out that the bill that will enter the National Congress this week:

“It would make it possible to debureaucratize the State and achieve less taxes, since we have the second highest tax burden in the world.”

This bill could also represent a catalyst for the further development of CBDC in Argentina, although Torres emphasizes that:

“We are not legislating on monetary matters, but offering the State one more tool that could be vital in the post-pandemic.”

The possible adoption of the legal framework will also enable international venture capitals that wish to fund companies in the sector to have some legal certainty. It will also help them identify who they are allocating their money.

Argentina and cryptocurrencies

Bitcoin demand in Argentina has continued to surge in recent months. The reason for the high demand is because the government is on the verge of defaulting on its debt and the currency is suffering from inflation.

Moreover, the South American country surpassed its own historical record for P2P transactions on the Paxful exchange, mainly because its citizens are looking to save in cryptocurrencies rather than in Argentine pesos.

Similarly, the use of stablecoins is also in vogue in the country since, with these means, Argentines make sure that their funds are not devalued.

It is therefore expected that, from Friday, Argentina will begin its journey to have its own cryptocurrency law that allows creating new opportunities in an emerging sector of great importance for the nation.

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