A bill encourages cryptocurrencies to be legal tender

Table of Contents Legal tender cryptocurrenciesWhat about volatility? The national deputy for Federal Unity and…

The national deputy for Federal Unity and Equity Jose Luis Ramon initiated the legislative path to turn his proposal into law so that workers can decide to collect their salaries in different cryptocurrencies.

“The idea is that they can strengthen their autonomy and conserve the purchasing power of their remuneration,” is what the legislator wrote in his Twitter account when talking about the bill. In the 14 pages that comprise the proposal, it covers from the collection of salaries of workers in a dependency relationship to the self-employed They export their services and have to settle their profit in local currency.

According to the text, each worker in a dependency relationship You will have the possibility to collect your salary partially or totally in the cryptocurrency (s) of your choice. We have already learned about the case of El Salvador, a country that adopted Bitcoin as its legal tender, but this project goes further because it would allow us to choose which cryptocurrency to operate with and even to do so in different digital currencies.

The choice is power only of the worker and it will not be the employer who can decide unilaterally the form of payment of the remuneration. In addition, according to this project, it is specified that the costs for the transfers made in each of the currencies must be assumed by the contractor.

Companies must also overturn all information on pay stubs expressed in pesos and the contributions and discounts will be made based on the total amount paid in pesos (including what corresponds to cryptocurrencies at the time of exchange).

The deputy who became known for waving a blanket in the chamber of Deputies explained to TN.com.ar that the idea had already circulated before taking office as a legislator, from the moment he met many in a workspace. young people who agreed to services for foreign companies in exchange for dollars and had many obstacles to be able to charge for their work. “The project is thinking to ensure that wages are not depreciated of thousands of workers in the knowledge economy ”, he added.

In principle, the proposal would only reach those whose salary includes the sum of three times the minimum wage, vital and mobile, and for self-employed workers who do not exceed the gross annual turnover of 5.5 million pesos, they are exempted from entering and paying the export charges. services, if the payment is made in cryptocurrencies.

Legal tender cryptocurrencies

The project never explicitly talks about converting crypto into legal tender. However, article 3 unequivocally infers it by stating: “The remunerations included in this chapter are exempted from the limit on payments in kind established in the second paragraph of article 107 of Law 20,774”.

cryptocurrencies

Payment in kind is one that is made with securities, promissory notes, company bonds and others that are on account of money but are not properly money. According to the Labor Contract Law, this form of payment cannot exceed 20% of the worker’s salary.

The labor lawyer Matias Cremonte He explained that “in order to exempt cryptocurrencies from being considered species, Law 20,774 would have to be modified, but there is also another instrument above that law that would not allow such an exception: the International Agreement on the protection of Wages that Argentina ratified in 1956 and that it is still in force ”.

Given this and for this project to become law, it only remains to consider cryptocurrencies as legal tender. This would no longer only imply charging in Bitcoin or Etherium but rather that they have to be obligatorily accepted by the State and individuals as a form of payment in, for example, purchases and sales.

What about volatility?

Just as cryptocurrencies have had sudden rises, they also had precipitous declines. As long as we are not talking about stable digital currencies that are tied to the value of another asset (dollar, gold, etc.). In the case of the best known such as Bitcoin, Etherium and now Doge, the value can change from one moment to another because the markets in addition to operating strictly by supply and demand, never close. The exchange operates from 10 a.m. to 3 p.m. from Monday to Friday, crypto 24 hours a day, 7 days a week.

Given this, the project foresees agreements that are made with the employer from the beginning and the option to automatically cancel the choice to charge with digital assets if, for example, the price falls by more than a certain percentage. The intention is that the employee never charge less than 75% of your salary if volatility is against you.

El Salvador and its millennial president, as he is called Here’s to watching, set a precedent in the world by adopting Bitcoin legally. Could Argentina follow him?

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