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Argentina To Pay 1$ in Bitcoin or Dai

Argentina is experiencing a new bout of market jitters following the opposition forces' triumph in the parliamentary elections. As economists forecast a recent devaluation, consumers scramble to hoard as many dollars as possible.

Argentines Willing to Pay for 1$ in Bitcoin/Dai Than for One Physical Dollar iBase Trading.
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Argentina is experiencing a new bout of market jitters following the opposition forces’ triumph in the parliamentary elections. As economists forecast a recent devaluation, consumers scramble to hoard as many dollars as possible. To be more precise, cryptocurrency dollars.

Dólar Bitcoin and Dolar Blue

This week, the Dólar Bitcoin (the dollar’s reference price in the cryptocurrency market) has exceeded the Dolar Blue. It is the referential price of the dollar in the unregulated parallel market. Individuals exchange cryptocurrencies at a more than 10% premium in most situations.

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According to data aggregator Criptoya, the Spot Bitcoin Dollar currently values at around 210.05 ARS. In comparison, the renowned Dolar Blue schedules to price at approximately 200.5 ARS on November 17, 2021.

When a typical Argentine purchases physical dollars in uncontrolled marketplaces, the Dólar Blue is used as a benchmark. Nonetheless, growth in the value of the cryptocurrency (or Dólar Bitcoin) indicates that Argentines are acquiring crypto via exchanges and peer-to-peer trading systems. The typical dollar is already priced at 213 ARS on Localbitcoins.

Meanwhile, stablecoins are trading at a premium in the market. On Ripio, one of Argentina’s most prominent exchanges, DAI – a highly popular decentralized stablecoin – purchased for an incredible 231 ARS. Each DAI token was roughly $210 at its lowest price on Binance P2P. Making it Argentina’s cheapest dollar equivalent for cryptocurrency enthusiasts.

Santiago Di Paolo, Head of Community Growth & Research at Argentina’s crypto platform Lemon, told local news outlet Ambito that cryptocurrencies are easier to manage and provide access to various services unavailable to those who continue to use physical dollars or operate within the traditional financial system.

Argentina’s Interest Heightens

According to analysts, interest in stablecoins and cryptocurrencies increased in the country due to the markets’ internal dynamics. The crypto dollar ties more closely to the spot US dollar than the color blue. Making it more appealing to those seeking to retain their value. As a point of reference, the official dollar’s price (as decided by Argentina’s Central Bank) barely hits 105.9 ARS for every unit sold.

In light of the country’s terrible financial crisis and the meteoric rise in popularity of cryptocurrencies, local governments have begun to target virtual currencies. They seek ways to either restrict their use to bolster the peso or profit from this economic activity.

The first, Córdoba, established that bitcoin transactions will have taxes and extensions to taxing individuals or businesses that accept cryptocurrency payments for their products or services.

Tucumán, for its part, published Law No. 9421 last week. It is amending the Tax Code (Law No. 5121) by altering Article 223 of the Tax Code to include crypto dealers as operators of the purchase and sale of foreign currencies and public securities. Thereby requiring them to pay taxes.

Furthermore, President Alberto Fernandez recently declared that he was open to the notion of accepting Bitcoin as a legal form of payment. Citing that trade volume and adoption have grown organically, two Argentine regions have already imposed taxes on cryptocurrency trading earnings.

“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”

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Sophia Vasquez is a journalist and writer for iBaseTrading. She has over 10 years of experience writing about Business news and has been covering the blockchain and cryptocurrency space since 2011.