Bitcoin inflation Argentina
Investing.com – The cryptocurrency market looks positive today, Friday. ,, and all recorded gains between 1.9 and 8.5 percent. Only that remains behind with a loss of 4.51 percent.
USA want to tax businesses with Bitcoin, Ethereum, Cardano, Ripple and Dogecoin in addition
Whenever it comes to generating new sources of tax revenue, governments get quite inventive. To date, the US authorities have not been able to put a clear regulation for the crypto industry on paper. But there is no shortage of draft laws for the taxation of this branch of the economy.
Republicans and Democrats have been haggling over the infrastructure spending bill for several months. And where money is spent, it should also be taken.
The crypto industry was also targeted by politicians, as several billion dollars can be extracted from this emerging market.
However, this is not as easy as the California Congresswoman Anna Eshoo points out.
The current bill stipulates that miners, validators and wallet developers have to pay a new crypto tax. People and companies that operate in the aforementioned business areas are to be treated as brokers in the near future. That way you could easily acquire more billions for the tax bag.
Eshoo believes this is not going to work as planned in practice, so she wrote a letter to Nancy Pelosi, Speaker of the House.
“In a decentralized system of cryptocurrencies, this group of people does not know who the buyers and sellers are. As a result, they are not even able to meet the requirements that apply to brokers.”
Earlier this week, the Senate failed to correct its own mistake in the trillion-dollar infrastructure bill that could cause great harm to innovative US-based fintech companies. A non-partisan amendment was drafted at the last minute, but Congress did not include it in the final text.
The crypto industry will soon have to pay new billions in taxes, that seems certain, but the politicians have not yet done their homework in full.
Argentina wants to get inflation under control with Bitcoin
In Argentina, however, you have a completely different problem – inflation. In June 2021, this reached an unbelievable 50.2 percent compared to the previous year, as the Instituto Nacional de Estadística y Censos (Argentina) announced.
For this reason, more and more Argentines are relying on cryptocurrencies, which their President Alberto Fernandez cannot blame them for. He also hopes that digital assets such as Bitcoin or a digital central bank currency (CBDC) will ensure more price stability.
At the beginning of June, El Salvador announced that it would make Bitcoin legal tender. At the beginning of autumn, all companies in El Salvador would then have to accept the cryptocurrency as a means of payment. Fernandez can envision such a move for Argentina as well and explains: “It is said that the advantage is that the inflationary effect is largely eliminated.”
However, the chairman of the Argentine Central Bank, Miguel Pesce, is not at all a fan of digital assets. Many would rather take tougher and tighten the regulation of this industry. He warned: “Cryptocurrencies are very detrimental to domestic financial stability.”
It remains to be seen whether he will prevail with his view of Bitcoin, Ethereum, Ripple, Dogecoin and Cardano.
The fact is that Argentina is very attractive to miners with its low electricity prices. According to GlobalPetroPrices.com, households only had to pay $ 0.06 per kilowatt hour in December 2020.
Therefore, mining is a good alternative for private individuals to do something against the escalating inflation when the peso loses value and the prices of cryptocurrencies rise.
by Marco Oehrl