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Argentina’s economic minister, Martin Gusman, announced his resignation on June 3, urging citizens to seek cryptocurrency hedging, raising tether prices by 6.6% against the Argentine peso, Bloomberg News. report..
Guzman’s resignation is already High inflation I saw a new surge. Following his decision to resign, Guzman addressed President Alberto Fernandez, calling for the integration of growing political divisions so that the next minister would not suffer.
Miguel Kigel, a former Minister of Finance of Argentina, hinted at the seriousness of the country’s economic problems, saying:
“I don’t know who will come, but this will be a very hot potato. Everyone who comes will have a very complicated time.”
Argentina is one of the countries with the highest adoption of cryptocurrencies Ranking 10th place as of 2022.
High recruitment Stem From decades of public distrust of the country’s financial system and high inflation. As of April 2022, Argentina’s inflation rate was 50.7%. At that time, Argentina was the sixth highest-inflated country with the highest adoption of cryptocurrencies, with 1.3 million cryptocurrency users accounting for almost 3% of the population.
Currently, about 60% of inflation remains. Over 66% of the population invests in cryptocurrencies to protect their savings from rising inflation. Santiago Siri, founder of Digital Coin UBI, commented on Argentina’s high adoption, saying:
“Walking around Buenos Aires is like traveling by mistake in 2034. Even builders and taxi drivers are saving cryptocurrencies.”
Moreover, hiring Argentina is not just about investing. With the introduction of Bitcoin ATM, citizens are also using it for daily payments. Puerto Madero, owner of the CrypStation Cafe, talked about his day-to-day operations and said that citizens are accustomed to using cryptocurrencies as a form of exchange.
The Argentine government cannot share the public’s enthusiasm for cryptography.Regulation Definition As a cryptocurrency:
“A digital representation of value that can be traded digitally and acts as a medium of exchange. And / or a unit of account. And / or a valuable store, but there is no fiat currency status in any jurisdiction.”
The county has not acquired the legal status of cryptocurrencies, but is subject to income tax because it considers the profits from their sales to be “income.”
The Central Bank of Argentina issued a rule in May 2022 to tighten regulations. Under the rules, traditional financial institutions were prohibited from providing crypto-related services, including crypto wallets, or issuing transactions or exchanges. At that time, the largest banks in the country had just launched a cryptocurrency service.
Central bank has users “Cryptographic risk to the entire financial system.” Anyway, the stricter rules did not prevent the adoption of cryptography in the country.
