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Argentina looks to Bitcoin as peso plummets

Argentina looks to Bitcoin as peso plummets

Workers’ salaries may be paid in bitcoins or other cryptocurrencies, according to a law filed by José Luis Ramón, a national representative representing the province of Mendoza.

El Salvador passed a similar proposal a month earlier, authorizing the so-called Bitcoin legislation, which makes the world’s most popular cryptocurrency a legal currency in the nation.

“Bitcoin provides workers with a tool to preserve their remuneration’s buying power”

Rep. José Luis Ramón

According to José Luis Ramón, who spoke to the paper La Nación, the initiative was created with the goal of “supporting more autonomy and control” in employees’ pay. “It provides them with a tool to preserve their remuneration’s buying power,” the deputy said.

The plan, according to the worker, would contain two ways of collecting payments. On one side, the pay might be paid in pesos before being converted to cryptocurrency. Another alternative is to charge straight in cryptocurrencies rather than converting to pesos after agreeing to pay a portion of the remuneration in digital currency. The Argentine peso is worth $ 0.010 (about 0.008 euros), while a bitcoin is worth 3.2 million pesos (now selling at around $ 33,000).

Bitcoin price, Bitcoin regulations in China and Europe

The present bitcoin price is the consequence of the cryptocurrency’s dramatic fall in recent months after hitting record highs in February. The Chinese central bank stated at the end of May that cryptocurrency cannot be used as a payment mechanism. Bitcoin fell more than 10% in a single day as a result of the Chinese central bank’s veto, losing its psychological threshold of $40,000 in the process. The European Commission is working on a legislation called MICA (Markets for Cryptographic Assets) to govern the usage of digital assets in Europe.

Source: Finanzas.com – Photo by Los Muertos Crew from Pexels.

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