- A lawmaker in Argentina has submitted a bill that will allow workers an option to be paid their salaries fully or partially in cryptocurrencies.
- The deputy believes that this will allow employees to preserve the purchasing power of their remuneration in light of soaring inflation rates in the country.
- Jose Luis Ramon stated the proposed law would promote greater autonomy for the citizens in Argentina.
Preserving the purchasing power of workers’ remuneration
Argentina’s national deputy for the Mendoza province, Jose Luis Ramon, has put forward a bill that proposes full or partial salaries of workers and service exporters to be paid in cryptocurrencies.
Ramon believes that with the proposal, Argentines can “preserve the purchasing power of their remuneration” while reinforcing their financial autonomy.
Employees can choose to be paid fully or partially in digital assets. Workers also have the liberty of selecting the type of cryptocurrency they wish to receive their salary in.
The deputy cited the reason behind the initiative as to “promote greater autonomy and governance of the salary.” The new legislation, if passed, would allow citizens who work overseas to choose not to convert their wages to the Argentine peso when returning to the country.
Argentina joins other Latin American countries that have seen an increase in cryptocurrency adoption due to economic turmoil. The country's economy was deeply affected by the COVID-19 pandemic in 2020.
In June, Argentine President Alberto Fernandez stated that the inflation rate in the country is nearing 50%. Citizens in the country have turned to safe-haven assets including cryptocurrencies as there is a general assumption that high inflation will devalue cash savings.
Since the pandemic emerged, the Argentine government printed more money that led to monetary and fiscal imbalances, the main factors in the country’s inflation.
According to economist Victor Beker, inflation is expected to be even worse, with a possibility of prices rising 60% this year if the government fails to form a viable plan.
This move comes after El Salvador has stated that the government is discussing whether Bitcoin should be used to pay employee wages in the country shortly after adopting the leading cryptocurrency as legal tender.