Argentina submits a bill that will allow workers to receive their salaries in Bitcoin: What does it mean?
There is an inflation problem, especially in some Latin American countries.
Weeks after El Salvador made Bitcoin legal tender, supplementing the USD, an Argentinian legislator, José Luis Ramón, submitted a bill that, if approved, will allow employers to pay using Bitcoin.
As per news sources, the objective is to use Bitcoin as a means of preserving the purchasing power of employers and strengthening their autonomy amid inflation concerns.
The Argentinian Peso rapidly fluctuates, often shrinking as inflation erodes citizens' purchasing power, making it nearly impossible to preserve value and accumulate wealth.
And this is the trend globally.
After months of COVID-19 containment efforts, monetary policymakers are faced with the trouble of arresting inflation.
If Juan's bill is approved, workers in Argentina will have an alternative to sink their savings in digital gold. It will be a way out from the poorly managed Argentinian Peso, a road to financial freedom.
At the same time, the resulting demand and popularity of Bitcoin will further cement it as a tool for driving financial inclusion and storing value, an alternative to gold.
The possibility of other countries following suit in a Domino effect will also be high, helping pump prices of limited BTC.