An Argentine lawmaker introduced a bill this week to allow employees and those who export services abroad to be paid in cryptocurrency due to the rising inflation in the country.
Workers can decide in which cryptocurrency they would like to get paid
In a tweet on Tuesday, an Argentine Chamber of Deputies member said he presented this bill to allow the people of Argentina to “strengthen their autonomy and maintain the purchasing power of their remuneration.”
Employees can choose to be paid in full or partially in digital assets. Workers will also have the freedom to select the type of cryptocurrency they want to receive their salary in.
The crypto law has to be passed by both the Argentine Chamber of Deputies and the Senate before being sent to President Alberto Fernández for approval. Ramón, the lawmaker who introduced the bill, is one of ten congressmen representing Mendoza province and the 6-person Federal Unity for Development alliance among three political parties. However, there are 257 members in the legislative house and 72 senators. Everybody’s Front and Together for Change are the two dominant alliances in Congress.
Year-on-year inflation reached 48.8% in Argentina
According to the latest official data, inflation in Argentina was 3.3% in May. It accumulated to 21.5% for the year, while year-on-year inflation reached 48.8%.
Argentines faced a devaluation of the peso from $0.02 to $0.006 in just 18 months. They can only buy up to $200 per month in dollars through official channels, with an additional tax of 65% above the official rate. The country also has an annual inflation rate of more than 40%.
The proposed bill comes at a time when lawmakers in central and South American countries are actively involved in cryptocurrencies. Last month, El Salvador passed a bill making Bitcoin legal tender, initiated Sept. 7. Members of Congress in Brazil and Panama have stated on social media that they are also seeing something in a form of legislation to support cryptocurrencies.