This is the 2nd article in the series which covers the importance of the G20 countries in the global legalization of crypto.
Argentina is the 2nd largest country in South America in terms of territory, population, and economy after Brazil. Considering the geopolitics of the region, it is an important player in crypto legalization. Moreover, its role in multilateral organizations, just like G20, is also significant.
Let’s begin with a few statistics.
Argentina has a GDP (Nominal) of USD 389 billion.
It has a population of 4.5 crores.
In crypto adoption, Argentina ranks 10th as per the Chainalysis Global Crypto Adoption Index and 16th in the Chainalysis DeFi Global Crypto Adoption Index.
These statistics speak for the country’s role in crypto adoption and formation of a global regulatory framework.
Regulatory Scenario for Crypto in Argentina
Last year, in July 2021, it was reported that Argentine lawmaker José Luis Ramón was going to introduce a bill that will allow workers to receive their salaries in Bitcoin.
But the Central Bank of Argentina is concerned about crypto especially because of the decreasing value of the Argentine Peso due to the 50% inflation rate.
Central Bank of Argentina Governor, Miguel Angel Pesce has expressed concerns about crypto on the grounds that it is not backed by any asset and can be used to scam people. He is also apprehensive of stablecoins as they can replace Peso.
Recently, Government increased the electricity charges on crypto mining and also has an undesirable tax regime to check the growth of crypto.
The high inflation of Peso has led to the proliferation of crypto cards that provide cashback.
Crypto is becoming the go-to option for people to hedge their money against inflation. As the Argentine Peso lost its value, P2P trade activity increased in the country.
Lately, no news of any ban came from the country. Crypto is not prohibited rather it is taxed to check money laundering and terror financing.
In South America, Argentina ranks 2nd in terms of the total value received, from July 2020 to June 2021, in crypto just behind Brazil, as per Chainalysis.
Most of the South American countries are Spanish speaking nations with Argentina being the biggest one. This also makes it an important player in the region as a crypto company in Argentina can easily expand to neighbouring countries. Only Brazil speaks a different language on the continent.
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