In a significant move to bolster Argentina’s position in the global crypto arena, President Javier Milei’s administration has submitted a groundbreaking bill to waive tax obligations on cryptocurrencies to Congress. The proposed legislation, named the “Law of Bases and Starting Points for the Freedom of Argentines,” aims not only to eliminate taxes on digital assets but also to grant legislative powers to President Milei, allowing direct action in various sectors without Congress intervention.
The bill, however, faced a setback as Minister of Interior Guillermo Francos revealed the removal of proposals related to cryptocurrency taxes due to a lack of consensus in Congress. Emphasizing the urgency of the bill, Francos asserted that the tax component, though delayed, was secondary to the overarching goal of fostering economic freedom.
The proposal is aimed at generating freedom for economic development. It was essential to get this out quickly. The tax part was smaller and delayed treatment.
President Milei, who assumed office in December 2023, has exhibited a fluctuating stance on digital assets. Despite devaluing the peso by 50%, he has in the past championed Bitcoin as a means to return money to the private sector. Crypto enthusiasts are hopeful that the bill, if approved, will propel Argentina towards crypto integration, despite the implicit ban on banks processing crypto transactions.
Argentina Steal Spotlight From El Salvador in Crypto Race
In contrast to El Salvador, which experienced a plateau in Bitcoin adoption outside of specific tourist areas, Argentina is emerging as a trailblazer in the crypto space. Escalating inflation rates, soaring to 147% in 2023, coupled with President Milei’s pro-Bitcoin stance, are driving factors behind Argentina’s increasing affinity for digital currencies.
Javier Milei’s victory in the summer election on August 13 not only hinted at potential economic policy shifts but also triggered a remarkable 20% surge in Bitcoin’s value within a day, reaching 10.2 million Argentine pesos. This political shift, combined with innovative ways by individuals and businesses to circumvent traditional financial systems, positions Argentina as a promising player in the global crypto landscape in 2024.