ARGENTINIAN BILL OF CRYPTO SALARIES
Can you receive your remuneration in crypto?
Technically not yet. However, the initiative is in the process of turning into a reality for the employees in Argentina. Here are the details of the Argentinian bill of crypto salaries!
A recent development in Argentina has brought a euphoria among millions of workers and employees. The regulators have received a bill allowing salaries to be paid, partly or wholly, in cryptocurrencies. At the same time, it would be up to the employees’ discretion to accept payment in cryptocurrencies such as Bitcoin, Ethereum and other stable coins.
The employees can obviously choose to continue the ongoing process of receiving the remuneration in fiat currency.
Why was this bill sent?
A powerful executive of the Argentinian Government said that the bill was introduced so as to enable the workers to “strengthen their autonomy and conserve the purchasing power of their remuneration.” This statement is completely justified. The inflation rate in Argentina is on the rise and it constantly eats up the value of the salaries. With no substantial raise in salaries, the purchasing power of the workers declines each year.
Whereas fundamentally strong coins such as Bitcoin have a history of increasing in value. In fact, Bitcoin has averaged a 300% return annually since 2010 despite all crashes.
The executive opined that the salaries in the form of crypto assets will ensure the well-being of the employees.
What are the opinions of the executive?
The executive further justified this bill. He said that Argentina had experienced a substantial rise in interest in cryptocurrencies, especially Bitcoin. He is of the opinion that cryptocurrencies have been adopted since a long time on account of the functions they offer. Their utility easily outperforms those of fiat currencies.
The executive also said that the proposition to pay salaries in crypto is not new. The initiative was conceived long back when an economic survey was conducted. The government found few discrepancies in the economy and were desperately looking for solutions.
This bill is a part of a larger project under the Knowledge Economic forum.
Did the neighboring countries play a role?
Yes, indeed they did. The executive himself said that following El Salvador’s bill legalizing Bitcoin, Argentina felt the need to take up an initiative as well.
Moreover, Germany’s stance in favor of the crypto industry may also have encouraged the country. Recently, Germany too, introduced a bill allowing as much as $425 billion in the crypto asset class. The Ukrainian adoption of Bitcoin may have had some influence on the Argentinian stance.
How will this bill help the employees?
The bill is designed to help employees become financially free.
It also grants full autonomy to employees. It is up to them and only them to decide whether they want their salaries in crypto assets or fiat currencies. No employer or government can force a person to accept either against their will. The bill aims to bring freedom and greater autonomy in the lives of the employees during tough times like these.
The bill also empowers the employees to fight inflation and win the battle. The inflation rate in Argentina was 3.3% in the previous year. However, it had peaked up to 23% during the pandemic. This implies that workers lost 23% of their fiat salaries to inflation in a year itself.
Cryptocurrencies solve the problem of inflationary pressure. They have a reputation of beating inflation rates by great margins. The value of most cryptocurrencies has doubled, tripled or even quadrupled while that of fiat currencies have lost their value over time. This bill aims to bring justice and parity between the employees and employers.
On a generic basis, if the bill is passed soon, the employees can capitalize the benefits of the market crash. Since the mid-May crash, the crypto markets are still in a recovery stage. If the employees receive the salaries in cryptocurrencies before the next bull run starts, they will earn unimaginable rewards.
Should the employees choose fiat salary?
The obvious answer would be ‘no’. However, they are recommended to choose fiat salary if they do not have the stomach to hold crypto during volatile times.
Cryptocurrencies are surely volatile assets, yet their long-term view is highly bullish. Employees choosing to accept crypto as their salary will reap the benefits in the coming decade.
After all, digitalization is the future of the world and it’s about time the employees became a part of it!