on the crypto
Argentina is experiencing a new episode of market nervousness following the victory of the opposition forces in the legislative elections. As analysts predict a new devaluation on the horizon, people are rushing to rack up as many dollars as possible… Crypto dollars, to be more precise.
So far, the price of “Dólar Bitcoin” (the dollar's reference price in the cryptocurrency market) has exceeded that of “Dolar Blue” (the dollar's reference price in the unregulated parallel market). People trade cryptocurrencies with a premium of more than 10% in most cases. Like? Maybe using Bitcoin Pro.
Argentina wants Bitcoin
According to some data, the Bitcoin Dollar Spot is around 210,05 ARS. In contrast, the famous “Dolar Blue” is priced at around ARS 200,5 as of November 17, 2021.
When the average Argentine buys physical dollars in unregulated markets, the Dólar Blue is taken as a reference. However, an increase in the appreciation of the crypto dollar (or Dólar Bitcoin) is a sign that Argentines are finding an advantage in acquiring cryptocurrencies through exchanges and P2P trading platforms. On Localbitcoins, the average dollar is already priced at ARS 213.
Meanwhile, the price of stablecoins is also above average. Su Ripio, one of the most popular exchanges in the country, DAI - a very popular decentralized stablecoin in Argentina - was bought for an impressive 231 ARS. The lowest price for each DAI token was nearly $ 210 on Binance P2P, making it the cheapest dollar equivalent for cryptocurrency enthusiasts in Argentina.
For reference, the official dollar price (determined by the Argentine Central Bank) reaches just ARS 105,9 per unit sold.
According to experts, interest in stablecoins and cryptocurrencies has increased in the country in response to internal market dynamics. The crypto dollar is more related to the spot cleared dollar than the blue dolar, which makes it more attractive to people looking to preserve their value.
Local governments want to tax crypto earnings
Santiago Di Paolo, Head of Community Growth & Research at the Argentine crypto platform Lemon, told the local news agency Scope that cryptocurrencies are easier to manage and Argentines can access a range of services that are not available to those yet. use physical dollars or operate within the traditional financial system:
“The benefits of having 'crypto dollars' are much wider than owning the physical dollar, because on platforms like Lemon Cash you can earn fixed annual crypto earnings of up to 13% in DAI (stablecoin) within the current financial ecosystem, or send the digital asset anywhere in the world instantly and at a lower cost ”.
In view of the severe financial crisis the country is experiencing and the explosion in popularity of cryptocurrencies, local governments have begun to target virtual currencies, looking for ways to limit their use in order to strengthen the weight, or at least make a profit from this economic activity.
An abuse of power?
President Alberto Fernandez recently stated that he is not opposed to the possibility of adopting Bitcoin as a legal means of payment, considering that the volume of trading and adoption has increased spontaneously.
And already two Argentine provinces are forcing citizens to pay taxes on profits made from trading cryptocurrencies.
The first, Córdoba, has stipulated that cryptocurrency transactions will be taxed, but extends this tax provision to individuals or companies that receive cryptocurrency payments for their products or services.
For its part, Tucumán last week published Law No. 9421, which introduces changes to the tax code (Law No. 5121), amending article 223 of the tax code to include cryptocurrency traders in the definition of operators of buying and selling foreign currencies and government securities, forcing them to pay taxes.
