Argentinian lawmaker proposes bill for companies to pay their employees in crypto

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An Argentinian lawmaker wants to allow employees to receive their wages in cryptocurrency.

Congressman Jos Luis Ramn on Monday introduced a bill allowing employees and service exporters to receive their full or partial wages in cryptocurrencies. According to Ramn, the idea behind his project is that Argentines can strengthen their autonomy and preserve the purchasing power of their remuneration.

Argentina is currently seeing its native peso suffer from inflation of 50% per year.

This initiative stems from the need to promote greater autonomy and governance of wages, without this implying a loss of rights or exposure to situations of abuse in the context of the employment relationship, Ramn said on his Twitter account. .

According to an overview published by Ramn, the project defines what Argentina treats as cryptocurrencies and other terms in the crypto market.

In 2019, the government forced service exporters to convert their income from dollars to Argentine pesos through an exchange channel authorized by the Argentine Central Bank, which currently has a conversion rate 78% lower than a conversion rate of different markets. , such as the one known as the dollar dolar bolsa exchange in Spanish, which allows certain bonds to be bought in Argentine pesos and sold for US dollars abroad.

“This project allows self-employed workers who export services abroad to retain the purchasing power of their remuneration in the process of entering the country,” said Ramon.

It also claims to clarify what are the employer’s obligations in the payment process and specifies that employees will have the “absolute” decision to accept, revoke or modify this type of collection.

The employer will also have to bear the costs of transferring the cryptocurrencies, according to Ramon’s draft, to which CoinDesk had access.

Ramn clarified that his project allows to agree a payment in pesos equivalent to the pricing of a cryptocurrency or a direct payment in cryptocurrency.

According to the latest official data, Argentina’s inflation in May was 3.3% and accumulated 21.5% for the year, while year-on-year inflation reached 48.8%.

Argentines have faced a peso devaluation of $ 0.02 to $ 0.006 in just 18 months and an annual inflation rate of over 40%. They are only allowed to purchase up to $ 200 per month in dollars through official channels with an additional 65% tax over the official quote.

Due to these restrictions, many Argentines have started adopting stable cryptocurrencies such as DAI, the volume of which has already grown at least six times this year, according to information provided by local crypto exchanges SatoshiTango, Decrypto and Ripio.

To avoid switching to Argentine pesos, many exporters receive their payments in cryptocurrency.

Bitwage, a platform that converts fiat to crypto, has seen a 300% growth in the monthly transaction volume of Argentines over the past year, while it has seen a 500% growth in the number of Argentines. registered on the platform, the company confirmed to CoinDesk.

Ramn, an MP for the province of Mendoza, belongs to the independent political group Unidad Federal para el Desarrollo (Federal Development Unit) and has already made headlines for particular behaviors in the chamber, such as when he lifted a blanket after having subsidies approved for energy consumption.

Read the full invoice (in Spanish) below:

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